Wells Fargo Hands Meta a $1,000 Target and a Warning About 2027 Earnings

Wells Fargo raised its Meta Platforms inventory worth goal to $1,000 from $796 this week. The new determine ranks among the many highest targets on Wall Street.

The financial institution saved its obese score. However, the identical observe expects Meta’s earnings to backside out earlier than its synthetic intelligence (AI) push reveals up in estimates.

Wells Fargo Doubles Down on Meta With a $1,000 Price Target

From Meta’s October 6 shut of $738.88, the brand new goal implies about 35% upside, based on Google Finance knowledge.

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The increase is analyst Ken Gawrelski’s second in about two weeks. He first moved the goal to $796 from $640 in late September.

Back then, he pointed to the early demand for Muse, the AI agent Meta launched on September 8. The newest observe goes additional, with the financial institution anticipating Meta to proceed climbing on Muse’s success, CNBC reported.

That momentum already reveals within the inventory’s efficiency. Since Muse’s launch, Meta shares have gained almost 20%, in contrast with a 1.5% rise within the S&P 500. 

That run circled a weak 12 months. Meta was down about 7% year-to-date on September 7, according to fund manager Dan Niles. It now stands up 11.94% for 2026.

The 2027 Catch in Wells Fargo’s Meta Call

Gawrelski framed Muse as the beginning of a new product cycle and in contrast it with the early days of Reels.

“[We] see FY27 as trough EPS of latest product cycle, akin to 2022 starting of Reels although w/ Muse a probably a lot bigger, AI-driven product cycle,” the analyst stated.

After 2027, he expects earnings estimates to rise steadily because the market components in AI product income.

Other analysts are extra conservative on worth. TipRanks knowledge reveals a median 12-month goal of $806.13 from 46 analysts over the previous three months.

JPMorgan raised its target to $920 last month. The financial institution argued Muse might turn out to be probably the most extensively used shopper AI app since ChatGPT. At the low finish, BMO Capital retains a $580 goal with a Hold score.

Jim Cramer is also in Meta’s corner. On October 6, the “Mad Money” host named Meta and Microsoft as examples of the blue-chip AI shares he favors.

Cramer acknowledged that Meta shares stumbled early in 2026. Still, he stated he trusts Zuckerberg and his group to seek out a strategy to earn cash from its AI spending.

“I assumed that Mark Zuckerberg and his dream group are good and they’ll determine one thing out,” he stated.

Niles sounds extra measured after the run-up. He stated he likes Meta lower than he did in September, although he nonetheless sees momentum.

Gawrelski expects Meta’s upcoming earnings commentary to set muted expectations for near-term Muse monetization. How the inventory reacts will present whether or not traders are prepared to attend till after 2027.

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