Goldman Sachs reiterated a Buy rating on Meta and raised its price target to $725, arguing the company's new Muse AI agent gives it a subscription revenue path few rivals can match. Even a small slice of Meta's user base paying for Muse could add billions in annual revenue, though the free tier and rising compute costs still leave the payoff uncertain.
Goldman Sachs analyst Eric Sheridan reiterated a Buy rating on Meta Platforms (NASDAQ: META) on September 14, setting a $725 price target, implying roughly 12% upside from the share price referenced in the note. According to Insider Monkey, Goldman believes Meta is moving from a "wall of worry" to a company positioned to monetize and productize compute.
Muse gives Meta a distribution edge
Meta launched its Muse AI agent on September 8 across iOS, Android, the web and WhatsApp, running on the Muse Spark 1.3 model. Unlike a reactive chatbot, Muse is built to browse websites, submit forms and complete purchases inside a secure virtual environment.
Muse follows a freemium structure: a free tier capped at 100 million tokens per week, a $20-per-month Power plan with 500 million weekly tokens, and a $100-per-month Maximum plan offering 3 billion weekly tokens and priority access. Meta AI chief Alexandr Wang has signaled that most users are expected to stay on the free tier, with paid plans designed mainly to cover compute costs rather than drive near-term profit.
The subscription math behind Goldman's bull case
Goldman points to Meta's 3.6 billion daily active people across its apps as of June as an edge over rival AI agents. Independent estimates suggest 10 million paying Muse subscribers could generate roughly $2.4 billion a year, assuming a blend of the $20 and $100 tiers. That figure would barely register against Meta's Q2 revenue of $60.8 billion, up 28% year-over-year.
Wedbush Securities, by contrast, kept a Neutral rating while raising its price target to $650, estimating Muse subscription revenue could reach about $5 billion by 2027 — roughly 1.5% of Meta's total expected revenue that year.
Privacy risk clouds the upside
Goldman flags privacy and security as the biggest risk to the Muse bet, coming as Meta has just agreed to a multi-billion-dollar settlement over claims it designed products in ways that harmed user wellbeing without disclosing the risks. Each Muse agent also runs inside an isolated Linux container on a dedicated virtual machine and can keep working after the app is closed, which could push compute costs higher if usage scales faster than paid conversion.
Despite the risks, 254 hedge funds held Meta stock at the end of Q2, down modestly from 262 the prior quarter.
Sources: Insider Monkey, Crypto Briefing
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