Wells Fargo analyst Ken Gawrelski raised his price target for Meta Platforms (META) to $1,000 from $796, maintaining an Overweight rating due to enthusiasm for the company's AI platform ramp. The analyst views Meta's Muse consumer AI agent as a significant long-term opportunity, citing internal data showing over 3 million weekly users and more than 6.6 million downloads since its September launch. Despite the bullish outlook on Muse, Wells Fargo warns of potential earnings headwinds driven by rising operating expenses. The firm estimates Meta's 2027 operating costs could reach $210 billion to $215 billion, surpassing Street estimates of roughly $202 billion, with EPS projected at $31-$32 versus a consensus of $34. This spending outlook follows a significant increase in the cost base, where second-quarter expenses rose 55% to $42.03 billion. Meta's core advertising business continues to provide financial support, with Deutsche Bank noting strong channel checks and improved campaign performance. However, investors are closely watching third-quarter commentary for clarity on management's timeline for converting Muse adoption into meaningful revenue, as the company faces competition from other major AI agents in the market. Citigroup also sees significant potential for Meta's AI strategy, estimating that Muse could generate over $27 billion in annual revenue by 2030. The brokerage highlights first-mover advantages and growing user engagement, while acknowledging that near-term earnings may be cushioned by ad engine improvements even if full Monetization of the AI agent is delayed.