Goldman Sachs, UBS Lift Meta Price Targets Above $850, Maintain Buy Ratings
Key Takeaways
- •Goldman Sachs raised its Meta price target from $725 to $860 and UBS lifted its target from $715 to $884, with both banks maintaining Buy ratings on the stock.
- •UBS identified Business Agents and Muse as potential revenue sources through WhatsApp and Messenger, and suggested Meta could become a contender in search advertising, a market long dominated by Google.
- •Meta shares closed at $742.96 on Monday, gaining 3.38%, and climbed again after the Muse Wonder announcement before renewed selling pressure on Wednesday left the stock below recent highs.
- •Meta introduced Muse Wonder and Muse Wonder Full on Monday, reporting competitive results in reasoning and coding against rivals such as OpenAI and Anthropic, prompting Zuckerberg to declare the company had reached the frontier of AI.
- •Other firms also adjusted their forecasts, with Guggenheim raising its target to $850, Truist Securities to $1,000, and BNP Paribas setting an $885 target, while Meta's October 21 earnings are expected to detail the costs and ad revenue underlying these projections.
Goldman Sachs and UBS have raised their price targets for Meta above $850 while maintaining Buy ratings on the shares. The revised forecasts reflect Meta's plans to diversify its artificial intelligence offerings and explore new revenue streams beyond its core advertising business.
The analyst updates came as Wall Street evaluated the company's AI spending and growth prospects, with Meta's third-quarter earnings report scheduled for October 21.
Goldman Sachs and UBS Raise Meta Price Targets
Goldman Sachs analyst Eric Sheridan raised his price target on Meta from $725 to $860, leaving his Buy recommendation unchanged. In parallel, UBS analyst Stephen Ju lifted his target to $884 from $715 and retained his Buy rating.
Advertising remains the core of Meta's revenue, and much of UBS's attention is on the company's plans to earn money from its newer AI products. The bank identified Business Agents and Muse as possible revenue sources, particularly through WhatsApp and Messenger. UBS also believes Meta could become a contender for search advertising dollars, a market long led by Google. The company's latest ad test showed higher levels of funding from automated campaign tools and AI-driven recommendations, and the bank expects these developments to help Meta attract more advertising spend.
The analyst revisions followed earlier Meta stock gains linked to Muse AI adoption, which drew fresh attention from Wall Street.
Meta Stock Performance and Other Wall Street Forecasts
Meta stock began October at $725.93 before recovering during the second week of the month. Shares closed at $742.96 on Monday, gaining 3.38%, as investors reacted to the company's latest AI developments. The rally continued on Tuesday, when Meta shares climbed again following the Muse Wonder announcement. Wednesday's trading, however, brought renewed selling pressure, leaving the stock below its recent highs. For context, the new Goldman Sachs and UBS targets stand roughly 16% and 19% above that Monday close.
Other analysts have also adjusted their expectations for the company. Guggenheim raised its target from $700 to $850, while Truist Securities lifted its forecast from $763 to $1,000. BNP Paribas assigned an $885 target as Wall Street assessed Meta's AI products.
The forecasts differ in their expectations for future earnings and the costs of developing AI services. Investors are waiting to see whether revenue generated from subscriptions, advertising, and business products can cover the additional infrastructure costs. Similar questions have surrounded Nvidia, where recent stock forecasts examined concerns about an AI spending bubble.
Meta's third-quarter earnings, scheduled for October 21, could provide more details about costs and advertising revenue — figures central to the assumptions behind the banks' revised targets.
Zuckerberg Says Meta Is Reaching the Frontier of AI
Meta CEO Mark Zuckerberg said the company had reached the “frontier of AI” — a term for models at the leading edge of capability — following the release of Muse Wonder. The announcement marked another step in Meta's efforts to compete with OpenAI and Anthropic.
Meta introduced Muse Wonder and Muse Wonder Full on Monday, adding new capabilities to its growing AI product range. The company reported competitive results in reasoning, coding, and other tasks against models developed by its rivals.
Zuckerberg has continued backing investment in computing infrastructure, research, and AI talent as Meta develops its technology. The company wants these products available across its applications while building paid services for businesses and consumers. The spending also comes as technology companies seek more computing capacity to support increasingly complex models. Recent Nvidia stock price predictions, for example, have focused on the competition for AI chips as companies work to develop alternatives to existing processors.
The upcoming quarterly earnings will provide another update for Meta on advertising revenue, business spending, and plans for future investments in AI.
This article is for informational purposes only and does not constitute financial or investment advice.
