Overview
- Meta released Muse Spark 1.3 on September 2, a model the company says delivers its biggest step forward in coding and agent work and that posted top benchmark scores against peer tests.
- Bernstein reaffirmed an Outperform rating with an $800 price target and said Meta is on track to surpass Google Search in advertising revenue by the end of 2026.
- Meta agreed to settle the teen-safety lawsuit for up to $18 billion and to make app changes for younger users, a move analysts say reduces legal uncertainty for the company.
- Several banks kept bullish or constructive views after the settlement, with price targets ranging from about $715 to $810, even as investors worry over large AI capital spending and unclear long-term returns.
- Watch for product moves that translate model advances into ads—reports of an AI agent called 'Hatch' for Instagram and WhatsApp are developing and could be a key test of Meta’s ability to monetize AI improvements.