Bernstein Raises Meta Price Target to $850

Bernstein SocGen Group analyst Mark Shmulik raised the price target on Meta Platforms Inc.

(NASDAQ: META) to $850 (from $800) while maintaining an Outperform rating.

“On this side of earnings, we feel the way we did going in.

Fears of accelerated investment tied to Muse success remain; an equity issuance appears increasingly likely to fill the funding game with a new share class; core remains a durable machine now turbocharged with Muse; and early traction of new Muse products and models are encouraging though early.

Management spent most of the earnings call painting the picture on how Meta can usher in personal intelligence, and it’s inspiring. All that’s left for Meta to do is keep painting.

The core remains a stunning Vermeer. Revenues grew +26% Y/Y with 4Q guidance pointing to similar growth as engagement and ad performance continue to grow at an impressively consistent clip.

Normally hesitant to offer forward-looking revenue color, management offered “strong” 2027 revenue expectations tied to further deployment of Muse across all parts of the core business.

A muse for Zuckerberg’s AI Sistine Chapel.

The idea of willing personal intelligence into existence is inspiring, and early Muse adoption is promising – 10M people have downloaded Muse, 2.5M use it daily, and 25% of weekly users have tried agentic shopping.

The upside around gaining any traction with enterprises, a right-to-win with 500M+ SMBs, and an expanding AI-enabled hardware strategy are all encouraging. Building AI at the cost of a da Vinci.

FY26 CapEx guidance grew by $5B to $135-145B, while management commentary noted that 2027 investment levels would be aggressive.

How big and how to fund the gap remain open questions, though comments on potentially pulling forward AI monetization efforts may be key to keeping investors along for the ride.”

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