Meta Shares Surge as Wells Fargo Raises Price Target Ahead of Meta Connect 2026

U.S. stock futures climb amid easing oil prices and Treasury yields; Meta’s AI assistant Muse gains early traction ahead of key developer event

U.S. stock futures pointed sharply higher before Monday’s market open, with Dow futures up more than 400 points, Nasdaq-100 futures rising about 1.0%, and S&P 500 futures up approximately 0.7%. This positive momentum comes as oil prices and Treasury yields retreated from last week’s highs, with Brent crude falling roughly 3.1% to around $100.62 a barrel and the 10-year Treasury yield easing from 5.01% to about 4.96%.

Wells Fargo Lifts Meta Platforms Price Target to $796

Meta Platforms Inc. (NASDAQ: META) saw its shares gain momentum in premarket trading following Wells Fargo’s decision to raise its price target on the social media and technology giant from $640 to $796, maintaining an Overweight rating. This new target implies nearly 20% upside from Meta’s last closing price.

The upgrade reflects Wells Fargo’s optimism about Meta’s recent artificial intelligence (AI) model launches and the early traction of its newly introduced AI assistant, Muse. The bank highlighted the growing user engagement with Muse as a key factor supporting the bullish outlook ahead of Meta’s annual developer conference, Meta Connect 2026, scheduled for September 23-24.

Early Adoption of Muse AI Assistant

Muse, launched earlier this month, is positioned as a personal AI agent capable of performing tasks such as sending emails, booking travel, and filling out forms, continuing to operate even after the user closes the app. It is powered by Muse Spark, Meta’s most advanced model for agentic AI tasks.

According to data cited by Wells Fargo from Sensor Tower, Muse downloads in the United States reached 264,000 on September 19, with daily active users hitting 448,000 on September 18. These figures indicate strong initial consumer interest, though they have not been independently confirmed by Meta or Sensor Tower.

Meta plans to roll out Muse across multiple platforms including iOS, Android, the web, and WhatsApp, with future support planned for its AI glasses. Most features are expected to remain free, with subscription options for heavier usage.

Meta Connect 2026: A Critical Test for AI Monetisation

Meta Connect is an annual two-day event where the company showcases its latest innovations in AI, augmented reality (AR), virtual reality (VR), and smart glasses. This year’s event will be held virtually and at Meta’s Menlo Park headquarters.

Wells Fargo expects investor attention to focus on Muse usage statistics and updates on Meta’s latest AI models during the conference. The firm’s raised price target is partly a bet on positive disclosures at Meta Connect, which will either validate or challenge the optimistic outlook.

Analysts caution that while Muse’s early adoption is promising, the path to significant financial impact remains uncertain. Oppenheimer analyst Jason Helfstein has expressed skepticism about Muse reaching a scale that would materially affect Meta’s revenue, citing challenges in converting free users to paid subscribers, competition, and consumer trust issues.

Sector Context and Other Market Movers

Meta’s share price gains on Monday outpaced broader technology sector movements. While Meta shares rose about 2.4% in premarket trading to around $681 and later climbed as much as 7% intraday, peer companies such as Alphabet (NASDAQ: GOOGL) increased by about 2%, and Microsoft (NASDAQ: MSFT) remained essentially flat. This divergence suggests that the rally is driven by company-specific factors rather than a broad sector re-rating.

In related market activity, Morgan Stanley raised its price target on cybersecurity firm Palo Alto Networks, citing increased demand linked to AI adoption. However, upgrades for other AI-related stocks such as CrowdStrike and networking provider Ciena were mentioned in some reports but could not be independently verified.

Other Key Market Events This Week

Investors are also watching several significant events this week that could influence market sentiment. Costco Wholesale Corporation is scheduled to release its fiscal fourth-quarter 2026 earnings on September 24, with an earnings call planned the same day.

Additionally, a highly anticipated summit between U.S. President Donald Trump and Chinese President Xi Jinping is expected to take place on September 24 at the White House. Ahead of this meeting, U.S. Treasury Secretary Scott Bessent disclosed proposals for a U.S.-China notification mechanism concerning AI incidents with national security implications, reflecting the growing geopolitical importance of AI governance.

Market Outlook

While the current market environment is supportive of technology and AI-related stocks due to easing bond yields and lower oil prices, analysts caution that this constructive tape remains vulnerable to reversals, particularly if yields rise again or oil prices rebound. Meta’s upcoming Connect event will be a critical test of whether its AI initiatives, particularly Muse, can translate into measurable engagement and monetisation gains without significantly increasing capital expenditure.

Investors are advised to monitor Meta’s disclosures closely and consider measured exposure ahead of the event, balancing potential upside against the risk of disappointment if usage metrics or monetisation plans fall short of expectations.