Meta Platforms shares META were jumping on Thursday, reversing premarket losses as investors reacted to a slew of bullish analyst commentary after the company’s Meta Connect event on Wednesday.
Meta was up about 2.6% on Thursday even as Nasdaq fell by about 0.7%, and S&P 500 slipped by 0.4%.
The 30-year Treasury bond yield touched 5.446%, its highest level since June 2004, while the benchmark 10-year Treasury note yield surged to 5.15%, approaching levels last seen in July 2007.
Oil prices added another source of pressure, with international Brent crude futures rising 3% to $106 a barrel and West Texas Intermediate crude gaining 3% to roughly $95.
The combination of higher yields and rising energy prices is raising concerns about the outlook for consumers and the path of monetary policy, potentially creating a more difficult backdrop for high-growth technology stocks. Meta shares have climbed about 22% since the AI assistant emerged on September 8, making expectations for fresh evidence of rapid adoption particularly high heading into Connect.
What happened at Meta Connect?
Meta’s Connect announcements on Wednesday showed that the company is building a broader ecosystem around Muse rather than treating it solely as another AI chatbot.
Zuckerberg unveiled Meta VR Glasses, a smaller and slimmer device designed to bring capabilities associated with bulkier virtual-reality headsets into a more compact form factor.
The glasses will cost $1,299 and are scheduled to launch in spring 2027.
Meta said the device weighs roughly as much as a deck of playing cards, with the battery and processor moved into a separate puck to reduce the weight of the glasses themselves.
The product is designed to compete with more expensive and cumbersome devices such as Apple’s Vision Pro, while reflecting Meta’s broader shift toward making AI central to its hardware strategy.
Meta also introduced Meta Charm, a small handheld device intended to provide quick access to Muse.
The gadget is approximately the size of an Apple AirPods case and includes a roughly 2-inch touchscreen and built-in 5G connectivity.
Meta said Charm will ship during the December holiday period but did not disclose a price.
The two devices expand Meta’s hardware ambitions beyond its successful smart-glasses business, while giving Muse more potential entry points into consumers’ daily lives.
Retail partnerships create a potential commerce opportunity
One of the most significant developments at Connect was the expansion of Muse’s ability to interact with retailers and other services.
Meta said Muse would become the primary interface for its smart glasses, allowing users to shop, make appointments, and complete other tasks through voice commands.
The company announced new partnerships with Walmart, Best Buy, Sephora, Wayfair, Dick’s Sporting Goods and Gap.
The partnerships are designed to reduce friction between discovering a product and completing a purchase.
Amazon, however, is not currently allowing Muse to access its store.
The development opens up a potential monetization model for Meta beyond advertising.
JPMorgan analysts led by Doug Anmuth said Meta could eventually generate revenue from transactions conducted through Muse using a take-rate or commission model.
JPMorgan raises Meta PT; says Muse could become most widely used consumer AI app since ChatGPT
JPMorgan raised its Meta price target to $920 from $820 following the event, saying Muse had the potential to become “the most widely used consumer AI application since ChatGPT.”
The prospect of AI-driven commerce could become increasingly important if users begin relying on Muse not simply to retrieve information but to complete tasks on their behalf.
Morgan Stanley also maintained an Overweight rating and a $775 price target on Meta following the Connect announcements.
Analysts led by Brian Nowak said the company’s latest AR glasses could represent an improvement over its previous virtual- and augmented-reality products.
“While we (and most investors) have been skeptical of META’s AR/VR efforts in recent years, this product does seem to be a notable improvement in size and capabilities and will have to be watched as a potential further upside node for ’27 (with META shares not pricing in any success here),” they wrote.
Morgan Stanley also expects transaction commissions from Meta’s retail partnerships to remain relatively low initially as the company focuses on expanding its ecosystem.
The firm said several details remain unclear, including data-sharing arrangements, merchant-of-record status, loyalty-program integration and retail-media opportunities.
Those terms could influence the economics of Meta’s commerce strategy as the partnerships develop.
Morgan Stanley also suggested that Walmart’s participation could eventually increase pressure on other major retailers and platforms to participate if Muse gains meaningful shopping traction.
More analysts raise PTs
Other analysts also responded positively to Meta’s Connect announcements.
Citizens raised its price target on Meta to $885 from $770 while maintaining an Outperform rating.
The firm pointed to Meta’s increasingly AI-focused hardware ecosystem and early Muse momentum as potential sources of new monetization opportunities.
Citizens said Connect demonstrated how Meta’s hardware strategy could reinforce its wider AI ecosystem, with Muse potentially expanding the company’s share of consumer AI usage.
KeyBanc analyst Justin Patterson has also raised his price target on Meta to $900 from $780, while Cantor Fitzgerald lifted its target to $860 from $680.
Both firms maintained Overweight ratings.
Mizuho, meanwhile, reiterated an Outperform rating and $750 price target.
The firm highlighted Muse’s rapid rise in Apple’s iOS App Store, app downloads, and growing promotion across Meta’s Family of Apps, as well as on television and out-of-home advertising.
Mizuho also pointed to the growing number of publishers and applications developing connectors for Muse.
The firm’s view is that Muse’s momentum could eventually support multiple expansion in Meta shares, particularly as the AI assistant becomes more deeply integrated across the company’s hardware and software ecosystem.
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