Key Takeaways
Meta Platforms shares declined during Monday’s premarket session, potentially marking consecutive down days for the first time since August’s midpoint.
Despite a 3% Friday retreat and Monday’s early weakness, September gains still total an impressive 32%.
The decline coincides with broader artificial intelligence sector weakness following OpenAI’s decision to halt training on new models.
Wall Street maintains a predominantly positive stance, with analyst targets spanning $855 to $950 driven by Muse’s promising start.
Jefferies highlights Muse’s expanding use cases, describing the AI assistant as an unexpectedly successful product launch.
Meta stock experienced another downturn Monday, retreating approximately 3% before the opening bell. This movement followed Friday’s similar 3% decline, threatening to deliver consecutive negative sessions for the first time since August’s middle stretch.
Despite this recent weakness, September has delivered exceptional returns for Meta shareholders. Through Friday’s closing bell, the stock had surged 32% during the month.
The bulk of this impressive run connects directly to Muse, the company’s standalone AI personal assistant. Following its September 8 debut, the application rapidly ascended to dominant positions across major app distribution platforms.
However, the momentum from that launch appears to be cooling. This development leaves investors questioning the stock’s trajectory moving forward.
Understanding the Recent Weakness
Some of the selling pressure originates from factors beyond Meta‘s direct control. OpenAI recently announced a temporary halt to training activities on its most recent model iterations, citing the need to implement enhanced safety protocols before proceeding.
This development has created headwinds across AI-focused equities, with Meta caught in the broader downdraft. According to BNP Paribas analyst Nick Jones, the critical narrative for shareholders has shifted toward competitive dynamics.
“Moving forward, we think investors should monitor expected rollouts of rival consumer AI assistants, especially from major platforms including Google and OpenAI,” Jones stated in his Friday evening research note.
Despite these concerns, Jones maintains a constructive view with an $855 target, suggesting 14% potential appreciation from Friday’s closing level.
Muse’s Revenue Path Remains Uncertain
Muse generates income primarily through modest transaction-based charges. Jones emphasizes that the application’s long-term revenue model remains unclear for the investment community.
He identifies advertising as a plausible future revenue stream, despite Meta’s current strategy of keeping Muse advertisement-free.
Jefferies takes a more optimistic position. Following its AI Summit, the firm maintained its Buy recommendation and $875 target, characterizing Muse as an unexpectedly strong product.
Meta’s shares last traded at $751.66, sitting just 1% beneath the 52-week peak of $779.82.
According to Jefferies, Muse adoption continues accelerating as users assign increasingly sophisticated responsibilities to the platform. The firm expressed surprise at the complexity of tasks users have delegated to Muse within weeks of launch, including parking violation payments and elaborate tracking system construction.
Trading at 19 times fiscal 2028 earnings projections, Jefferies believes additional upside remains achievable. While acknowledging forthcoming competition from Alphabet and Apple, the firm hasn’t adjusted its assessment.
Additional analysts have also elevated their outlooks. Canaccord increased its target to $950, emphasizing Muse’s accumulation of 2.5 million downloads during its initial fortnight.
TD Cowen lifted its price objective to $865, referencing improved clarity on AI revenue generation following Meta’s Connect conference. That gathering featured unveilings of new virtual reality hardware and AI Audio Glasses.
Piper Sandler similarly raised its target to $875, responding to CEO Mark Zuckerberg’s AI-focused remarks at Connect 2026. Universal enthusiasm doesn’t exist, however.
Oppenheimer maintained its Perform rating, expressing reservations about Muse’s revenue potential and 2027 operational spending. The firm observed that Muse continues attracting approximately 340,000 daily U.S. downloads.
BMO Capital likewise adopted a measured stance with a Market Perform rating and $580 target. BMO referenced Meta’s forthcoming VR glasses, carrying a $1,299 price tag with spring 2027 availability.
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