Meta Platforms Inc. (META) stock is trading higher Tuesday in premarket trading, extending a sharp rally fueled by excitement around the company's new Muse AI agent and bullish analyst commentary.
Nasdaq futures slipped 0.02%, while S&P 500 futures fell 0.03%.
Meta stock closed up 11.34% Monday, reaching its highest level since January as investors cheered early traction for Muse. Shares are now up about 28% in September.
Meta gained more than $200 billion in market value intraday, with its market capitalization rising by about $207.5 billion to roughly $1.902 trillion from $1.695 trillion at the prior close, according to market data.
Wells Fargo added to the bullish tone Monday by raising its Meta price forecast to $796 from $640 while maintaining an Overweight rating. The firm cited growing excitement ahead of Meta Connect, where CEO Mark Zuckerberg is expected to outline the company's broader product vision.
The event includes a keynote Wednesday, Sept. 23, followed by a developer session Thursday, Sept. 24. Meta's recently launched Muse AI agent is designed to help users complete tasks and pursue personal goals.
Muse AI Gains Early Traction
Piper Sandler senior research analyst Tom Champion told CNBC on Monday that Muse has had a strong start. He pointed to high usage, positive ratings and its position atop Apple's App Store.
Champion said the reception could strengthen investor confidence in Zuckerberg's heavy spending on artificial intelligence.
"The market is coming to terms with the fact that maybe Mark Zuckerberg's investment plans are fairly rational after all," Champion said.
Champion added that Meta already operates one of the world's largest digital media platforms, with about 3 billion people using its apps daily. He said AI agents could add another major use case across Meta's ecosystem.
He also described Meta as an increasingly essential advertising platform because of its massive reach.
Analysts See More Catalysts Ahead
Rosenblatt Securities recently maintained its Buy rating and $886 price forecast. The firm highlighted upcoming Meta products, including camera-free smart glasses code-named Luna that are expected this fall. The glasses are expected to include six microphones designed to support AI interactions.
Citigroup analyst Ronald Josey also recently maintained a Buy rating and an $800 price forecast, calling Meta a "top pick" and flagging next week's Connect event as a near-term catalyst.
MarketDash Edge Rankings
Meta scores strongly on growth and momentum in the MarketDash Edge rankings.
Momentum stands at 78.64, while growth scores 79.79. Quality comes in at 75.36 and value at 46.83.
The readings point to strong growth and momentum characteristics. However, the lower value score and elevated RSI show the stock has become more extended after its rally.
Top ETF Exposure
The Global X Social Media ETF (SOCL) has a 9.26% weighting in Meta. The Invesco AI and Next Gen Software ETF (IGPT) has an 8.43% weighting, while the Natixis Loomis Sayles Focused Growth ETF (LSGR) has an 8.12% weighting.
Large ETF inflows or outflows can therefore add to buying or selling pressure in Meta shares.
Price Action
Meta Platforms shares were up 0.57% at $745.48 in Tuesday's premarket session, according to market data.
