Wells Fargo Raises Meta Target to $796 as Investors Bet on Muse AI

Wells Fargo has raised its price target for Meta from $640 to $796, arguing that recent Muse launches give the company a more convincing AI story. Investors moved quickly: Meta shares rose more than 10% in intraday trading, as early interest in the personal AI agent became a market-moving signal.

The promise in the call is straightforward: Meta’s AI work is becoming something investors can see in products, not just infrastructure spending. Wells Fargo analyst Ken Gawrelski pointed to the Muse assistant and Muse Spark model as evidence of stronger AI capabilities and services. Meta introduced Muse on September 8 as an agent designed to take actions for users, powered by Muse Spark.

Muse had logged about 730,000 downloads in roughly five days after launch, according to Sensor Tower data cited by CNBC. Meta shares had gained 21% since the company unveiled details of the assistant. Those figures measure an unusually fast opening burst of consumer attention; they do not by themselves settle how much durable use or commercial value the product will produce.

The stock reaction was accompanied by unusually heavy derivatives trading. Meta options volume reached about 4.5 times its 30-day average on Monday, with roughly $3.9 billion in premium exchanged, according to Cboe LiveVol and SpotGamma data. More than twice as many calls as puts were likely bought, and seven of the 10 largest trades were bullish or neutral.

That positioning was not entirely one-way. SpotGamma data indicated that more than $1.3 billion in call premium was likely initiated by buyers, while about $1.1 billion was tied to selling, a mix CNBC described as a bullish bias balanced by upside hedging. CNBC also reported that the day’s largest dollar-value trader appeared to take an approximately $20 million net short position through spread trades that would profit if Meta fell below $740.

Meta describes Muse as a personal agent that can handle tasks such as sending email, booking travel, filling out forms and making purchases after a user connects services. The company says it is rolling out in the United States on iOS, Android and muse.ai, with AI-glasses availability planned later. That broader product claim is what gives the early download number strategic weight: Muse is intended to act across a user’s digital life rather than simply respond in a chat window.

Meta is scheduled to preview AI and wearable-device plans at its Meta Connect conference on Wednesday. For now, the market evidence behind Wells Fargo’s call is a newly launched agent, fast initial downloads and strongly bullish options activity, with one large trade pointing to a potential pullback.