- JPMorgan lifted its Meta stock price target after the company's Muse AI agent showed strong early adoption, putting the focus on whether the new product can create additional revenue opportunities.
JPMorgan raised its price target for Meta Platforms Inc. (NASDAQ: META) to $920 from $820, citing the early momentum surrounding the company's Muse artificial intelligence agent.
The move came after Meta's Connect event, where the company highlighted its latest AI products and the development of Muse. JPMorgan analyst Doug Anmuth said Muse has the potential to become one of the most widely used consumer AI applications since ChatGPT. The bank maintained its Overweight rating on Meta.
Meta shares were trading around $729.59 in premarket trading Thursday, down about 2% at the time of the report, after rising roughly 30% over the previous month.
Why JPMorgan Raised Its Meta Stock Price Target
JPMorgan's revised target reflects the early adoption of Muse and its potential to expand Meta's AI business beyond its existing products. Muse launched earlier this month using Meta's Muse Spark AI model. Within its first two weeks, the AI agent had connected with more than 2,000 apps and established partnerships with companies including Walmart, Best Buy, Sephora and Wayfair.
The agent is designed to perform tasks for users rather than simply provide answers. Its capabilities include interacting with other applications and completing activities on a user's behalf.
JPMorgan said the connections between Muse and businesses could eventually provide new monetization opportunities. The bank pointed to commissions or transaction-based revenue as one potential model.
Is Meta Stock a Buy After the Muse Launch?
The higher JPMorgan price target does not establish that Meta stock will reach $920. It represents the bank's current valuation estimate based on its expectations for the company. Meta's recent share-price gains also mean investors are evaluating the stock after a significant move higher. The shares had gained about 30% over the previous month when JPMorgan raised its target.
The key issue for investors is whether Muse can maintain its early user growth and eventually generate meaningful revenue. JPMorgan's comments point to the potential for AI agents to become another business platform for Meta, but the product remains in its early stages.