Truist's Street-High Meta Call Lifts Social Media Shares
Truist analyst Youssef Squali raised his Meta price target to $1,000, the highest on Wall Street, pointing to adoption of the Muse AI agent. Meta and Snap shares each gained 4% in morning trading, while Reddit rose 2% and the Global X Social Media ETF added 1%. The rally occurred even as the QQQ ETF slipped 0.4%, and Meta's recent Q2 EPS miss and $130 billion to $145 billion capex guidance keep Muse revenue timing in focus.
Truist's Youssef Squali lifted his Meta target to $1,000 while maintaining a Buy rating. He pointed to early uptake of Muse, the AI agent Meta introduced in early September, and folded a Muse benefit into later-year projections while shifting his valuation horizon forward.
Meta traded at $770.07, up 4%, with Snap at $6.77 also up 4%; Reddit reached $163.12, up 2%. SOCL added 1%, with Meta at 8.7% of its net assets as of July 31, even as QQQ slipped 0.4%. Meta's Q2 EPS of $6.18 missed the $7.22 estimate, and capex guidance was $130-$145 billion.
The move could shape how investors value social platforms' AI efforts, potentially affecting shareholders and funds holding these stocks. Advertisers and small businesses may gain easier creative tools, while users could see more AI-generated ad variations. Because Meta's spending is enormous and its recent profit missed estimates, the market's reaction may hinge on whether Muse revenue arrives soon enough to justify the investment. Snap's hardware debate and Reddit's smaller gain suggest the sector's AI enthusiasm may remain uneven.