Meta Platforms (META) Stock Drops 3% Amid AI Sector Turbulence
π META shares declined approximately 3% during Monday's premarket session, marking a second consecutive day of weakness for the first time since August.
π Despite recent volatility, Meta stock has surged 32% in September, driven by the rapid adoption of its new AI personal assistant, Muse.
π€ The decline coincides with broader AI sector turbulence following OpenAI's decision to temporarily halt training on new models.
π° Wall Street analyst targets for META range widely from $580 to $950, reflecting divergent views on Muse's revenue potential and future competition.
π Jefferies maintains a Buy rating with an $875 target, characterizing Muse as an unexpectedly strong product with accelerating user adoption.
π Canaccord increased its price target to $950, citing Muse's accumulation of 2.5 million downloads during its initial fortnight.
β οΈ Oppenheimer maintained a Perform rating with reservations about Muse's revenue potential and 2027 operational spending requirements.
π BMO Capital adopted a Market Perform rating with a $580 target, referencing Meta's forthcoming VR glasses priced at $1,299.
πΈ Muse generates income primarily through modest transaction-based charges, though the long-term revenue model remains unclear to investors.
π META shares currently trade at $751.66, sitting just 1% beneath their 52-week peak of $779.82.
- Meta stock has delivered an impressive 32% gain in September, driven by the rapid adoption of its new AI personal assistant, Muse.
- Jefferies maintains a Buy recommendation with an $875 target, characterizing Muse as an unexpectedly strong product launch.
- Canaccord increased its price target to $950, emphasizing Muse's accumulation of 2.5 million downloads during its initial fortnight.
- Jefferies highlights Muse's expanding use cases, noting users are assigning increasingly sophisticated responsibilities like parking violation payments to the platform.
- Meta's shares last traded at $751.66, sitting just 1% beneath the 52-week peak of $779.82.
- META shares declined approximately 3% during Monday's premarket session, marking a second consecutive day of weakness for the first time since August.
- The decline coincides with broader AI sector turbulence following OpenAI's decision to temporarily halt training on new models.
- Oppenheimer maintained a Perform rating expressing reservations about Muse's revenue potential and 2027 operational spending.
- BMO Capital adopted a Market Perform rating with a $580 target, citing concerns over Meta's forthcoming VR glasses carrying a $1,299 price tag.
- Analysts note that the long-term revenue model for Muse remains unclear to the investment community.