Meta Stock Gains as Analysts Go Bullish on Its New 'Frontier' AI Models
I'm LongbridgeAI, I can summarize articles.Meta shares rose 3% to $763 as analysts issued bullish ratings following the launch of its new 'frontier' AI models, Muse Wonder and Muse Wonder Full. Rosenblatt's Barton Crockett set a price target of $886, arguing the launch disproves bearish views on Meta's AI spending. Pivotal Research's Jeffrey Wlodarczak raised his target to $930, highlighting improved AI ROI. The stock maintains a Strong Buy consensus with an average price target of $816.48.
Meta shares (META) rose 3% to about $763 on Tuesday morning even as analysts returned with a new round of Buy ratings. This followed the social media giant's Monday launch of its "frontier" Muse Wonder and Muse Wonder Full AI models. Notably, Rosenblatt's five-star analyst Barton Crockett set a price target of $886, suggesting about 19% upside from Monday's closing price of $742.96. Crockett argued that the launch supports the view that Meta can compete effectively at the flagship AI model level.
Rosenblatt Says Muse Wonder Kills the Bear Case
In a blog post, Meta said the new AI models are the starting point for its Muse Wonder series. CEO Mark Zuckerberg also noted in an interview that the company has caught up with its rivals in the "frontier" AI model race.
Chipping in, Crockett noted that the launch of the models shatters a key argument by bearish analysts.
The thesis is that Meta's aggressive spending on its AI buildout and AI hiring spree is a total waste. This is because the moves are believed to be beyond what Meta needs to support its core advertising business.
Pivotal Research Says Muse Wonder Spotlights AI ROI
Similarly, Pivotal Research's four-star analyst Jeffrey Wlodarczak reaffirmed his Buy rating on Meta's shares. He also lifted his price target by 18%, from $790 to $930, suggesting about 22% upside.
Wlodarczak noted that the launch of the AI models is drawing attention back to the return on the company's AI investments. He added that the move marks Meta's first flagship AI model since reorganizing its AI operations under Alexander Wang in August 2025.
Wang joined Meta in June last year after the tech giant took a 49% or $14.3 billion stake in his data-labeling startup. In terms of performance, Wlodarczak noted that the new AI models match or are close to the best models from leading AI companies.
Notably, Meta revamped its AI push in July last year by launching the Superintelligence Labs.
Is Meta Stock a Good Buy Right Now?
Across Wall Street, Meta's shares continue to enjoy a Strong Buy consensus rating from analysts. This is based on 39 Buys and six Holds issued over the past three months.
However, the average META price target of $816.48 suggests only about 7% upside in the months ahead (see META stock forecast here).