Meta Platforms’ (META) launch of its first major AI model, Muse Spark, has impressed investors and Wall Street analysts. Muse Spark is the first innovation from the social media giant’s Muse series, developed by Meta Superintelligence Labs (MSL). The MSL AI unit is led by Alexandr Wang, who joined the company nine months ago. Piper Sandler analyst Thomas Champion reiterated a Buy rating on META stock with a price target of $880 following the launch, saying that it remains his top large-cap pick.
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Additionally, Citizens analyst Andrew Boone reiterated a Buy rating with a price target of $900, citing the favorable impact of AI on Meta Platforms’ ad business.
Meta Platforms’ unveiling of Muse Spark comes amid intense competition in the AI space from AI start-ups OpenAI and Anthropic, as well as Alphabet-owned Google (GOOGL). The company is trying to gain some ground in the AI market following the disappointing launch of its previous flagship Llama 4 family of AI models.
Piper Sandler Analyst Cheers Muse Spark Launch
Champion believes that the launch of Muse Spark indicates significant progress by Meta Platforms in creating a “competitive frontier model,” which he had been looking forward to since the start of the year.
The 4-star analyst is keen to understand how the company will use its Instagram, Facebook, and WhatsApp apps to drive downloads and engagement of Meta AI across its vast base of more than 3.5 billion daily active users. Champion will also closely watch how Meta AI fits into people’s daily lives, and how it will differentiate itself from ChatGPT or Gemini. He is also interested in seeing monetization opportunities for the Shopping Mode feature present in the revamped Meta AI with Muse Spark.
“So far, most LLMs have yet to monetize search, but Shopping Mode seems like it could have natural advertising opportunities,” said Champion.
Citizens Analyst Is Bullish on Meta’s AI Efforts
Citizens’ Boone believes that Meta Platforms’ advertising business continues to benefit from AI advancements, as better models boost the relevance of content via improved engagement. He added that AI also enhances the relevance of ads via higher click-through rates.
The 5-star analyst believes that the advancements of Muse Spark, which is “purpose-built for Meta’s products,” can translate into better ad results. “We come away from this release with greater confidence that Meta can outperform our and Street ad forecasts for 2026,” said Boone.
Boone highlighted that the increased pace of AI development by Meta Superintelligence Labs reinforces his confidence that benefits can continue in 2027 and beyond as future developments are integrated across Meta’s business.
Is META a Good Stock to Buy?
Overall, Wall Street has a Strong Buy consensus rating on Meta Platforms stock based on 39 Buys and six Holds. The average META stock price target of $847.70 indicates about 35% upside potential. META stock is down about 5% year-to-date.
