Guggenheim Raises Meta Price Target to $850

Guggenheim analyst Michael Morris raised the price target on Meta Platforms Inc.

(NASDAQ: META) to $850 (from $700) while maintaining a Buy rating.

“We raise our 12-month price target to $850 from $700 on higher 2027 estimates, with Muse usage trajectory and engagement depth as the primary swing factor for sentiment heading into the 3Q call.

Muse reached 1.3mm DAU through five weeks per Apptopia (vs.

0.3mm in week one), representing under 0.05% of Meta’s 3.6bn daily active user base, and we expect management to prioritize usage scaling ahead of near term monetization.

Over time, we believe Muse monetizes primarily through businesses paying to reach consumers through their agents, consistent with the economics of Meta’s core advertising business, rather than consumer wallets.

The Shopify and PayPal checkout integrations provide early evidence of this framework.

Muse Wonder (launched October 12) is an important catalyst to the extent it strengthens the agentic product; a frontier model race without a link to agentic leadership is a competitive cost center rather than a growth investment, and we will listen for management to draw that connection on the call.

The prevailing concern is that a rival leapfrogs Muse or Wonder and locks Meta into a perpetual over-investment cycle, though in our view Meta’s track record (WhatsApp globally, Reels vs.

TikTok) and the feedback loop from free distribution to 3.6bn users position the company as the most likely scaled leader.

We raise our 2027 capex forecast to $225bn (vs. $203bn prior) to fund these opportunities and forecast 3Q core advertising growth of +25% (vs. +26% in 2Q), with 3Q operating income reflecting a $10bn legal charge tied to the August child-safety settlement with state attorneys general.

Maintain BUY rating.”

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