Meta surges 11% as Wells Fargo lifts target to $796

Meta shares jumped more than 11% on Monday after Wells Fargo increased its price target on the company and the Meta Muse AI agent app took the top spot on the Apple App Store.

In a note to investors, Wells Fargo analyst Ken Gawrelski raised his target on Meta from $640 to $796 per share. Gawrelski cited recent artificial intelligence model launches, including the Muse Spark offering and the Muse assistant, saying the company now has a story to tell regarding its AI capabilities and services.

The momentum marks a shift from last year, when Meta faced model delays and investor scrutiny over billions spent on AI infrastructure. CEO Mark Zuckerberg reorganized the AI lab and hired Alexandr Wang, co-founder and CEO of Scale.AI, as Meta's chief AI officer. The company now offers several models within its Muse AI family.

The target boost comes ahead of the Meta Connect conference on Wednesday, where Zuckerberg is scheduled to deliver a keynote on upcoming plans for AI and wearable devices.

Meta stock has fallen roughly 5% over the past 12 months, trailing Amazon's 38% gain, Google's 11% increase, and Microsoft's 4% decline. However, Meta shares have gained 30% over the past three months, trailing only Microsoft's 35% advance.