Meta's AI Push Draws Fresh Street Calls – Goldman Flags Higher Costs, UBS Sees Monetization Potential

• Goldman Sachs cut its price target on META to $762 from $860 but raised revenue estimates, citing favorable advertising trends.
• UBS raised its target to $884 from $715, citing AI revenue opportunities in WhatsApp, Messenger and search advertising.
• Guggenheim lifted its target to $850 from $700, highlighting Apptopia data showing 1.3 million daily average Muse users over five weeks.

Meta Platforms (META) drew contrasting price target takes from Wall Street on Wednesday, with Goldman Sachs lowering its target due to concerns about higher 2027 operating expenses, while UBS and Guggenheim raised theirs on expectations of new artificial intelligence (AI) revenue opportunities. 

According to TheFly, all three firms maintained ‘Buy’ ratings on the stock. As of this writing, META stock was trading nearly 1% lower in Wednesday’s premarket session.

Goldman Sees Higher Costs For META

According to TheFly, Goldman Sachs lowered its price target on Meta to $762 from $860. The firm noted that Meta shares have rallied 37% from their August lows after the Muse agent launch and the Wonder model release.

However, the analyst flagged potential upward pressure on 2027 operating expenses as Meta invests in proven product opportunities, contributing to differences between its forecasts and Wall Street estimates.

At the same time, Goldman raised its revenue estimates for the next six to 18 months, citing favorable secular and cyclical trends in digital advertising.

UBS, Guggenheim Focus On Meta’s AI Monetization

UBS raised its price target on Meta to $884 from $715, saying Meta's rollout of Business Agents and growing Muse usage were laying the groundwork for two generative AI revenue opportunities: monetization through WhatsApp and Messenger, and potential market-share gains in search advertising.

The firm also cited advertising checks, per The Fly, showing strong incremental contributions from AI automation and recommendations this year, strengthening its case for Meta capturing a larger share of digital advertising budgets.

Meanwhile, Guggenheim analyst Michael Morris identified Muse usage and engagement depth as “the primary swing factor for sentiment” heading into Meta's third-quarter earnings call.

Citing Apptopia data, Guggenheim noted that Muse reached 1.3 million daily average users over five weeks, representing less than 0.05% of Meta's 3.6 billion daily active user base. The firm raised its price target on META to $850 from $700.

Morris expects Meta to prioritize scaling usage over near-term monetization. The analyst believes Muse will primarily generate revenue through businesses paying to reach consumers through their agents, consistent with Meta's existing advertising model.

Muse Wonder Launch Ahead Of Earnings

The analyst calls follow Meta's October 12 introduction of Muse Wonder and Muse Wonder Full, which the company described as its most capable AI models to date. Meta is scheduled to report third-quarter results after the market closes on October 21. 

So far this year, Meta stock has risen over 17%. By comparison, the Roundhill Magnificent Seven ETF (MAGS), which holds the stock, has risen nearly 14% during this period.

On Stocktwits, retail investors’ sentiment around META stock continued to remain in the ‘bearish’ territory.

See Also: OpenAI CFO Sarah Friar Sees Cybersecurity As Potential 'Big Driver' Of Business Amid Rising AI Demand

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