Meta Jumps 7.6% as Wells Fargo Lifts Target to $796 Before Meta Connect

The move came after Wells Fargo's Ken Gawrelski lifted his price target on Meta to $796 from $640 while keeping an overweight (buy) rating, a target that implies 20% upside to Friday's close. The timing matters: Meta Connect, the company's annual two-day showcase, begins Wednesday, and the article notes Meta will likely highlight adoption of Muse, its personal AI agent unveiled earlier this month with a free version and paid tiers at $20 and $100 per month.

The distinction the article draws is that Meta's focus on direct-to-consumer applications differs from many rivals, who focus on enterprise tools delivered through their cloud computing services. That could make Meta's agent a more consumer-facing bet, with usage updates at Meta Connect serving as a possible early signal of an ongoing revenue stream.

Against that, the article notes Meta's legal troubles have weighed on the stock as investors assess the long-term implications of a recent $18 billion legal settlement, and even after today's rally Meta trades at less than 27 times earnings. The near-term test looks likely to be whether usage updates at Meta Connect translate into evidence of a durable revenue stream, rather than a one-off rally on analyst enthusiasm.