# Morgan Stanley Raises Meta Price Target to $820 Despite AI Retention Concerns

- URL: https://stocks.freetheai.org/news/morgan-stanley-raises-meta-price-target-to-820-despite-ai-retention-concerns-27d797
- Published: 2026-10-19T15:46:46Z
- Category: analyst_ratings; sentiment: mixed; impact: medium
- Symbols: [NASDAQ:META](https://stocks.freetheai.org/symbols/NASDAQ-META)
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
- How write-ups are made: https://stocks.freetheai.org/how-we-write
- Not financial advice: https://stocks.freetheai.org/disclaimer

Morgan Stanley increased its price target on Meta Platforms Inc. (META) to $820 from $775 while maintaining an Overweight rating on the stock. Shares of the company traded about 0.6% lower following the update. Despite raising the price target, the firm raised questions about daily user engagement for Meta's new artificial intelligence agent, Muse.

Although Muse continues to attract roughly 300,000 new downloads per day in the United States, its 14-day retention rate is around 20%. Daily active users have not grown at the same pace as initial installations. The gap underscores the challenge Meta faces in turning early consumer curiosity into steady daily habits as it expands beyond its core advertising business.

Investors are now looking ahead to Meta's third-quarter earnings report on Wednesday after the market close. The upcoming results will offer a closer look at whether heavy capital spending, projected between $130 billion and $145 billion for the full year, is yielding stronger financial growth and sustained AI adoption.

## Key points

- Morgan Stanley reiterated an Overweight rating on Meta Platforms Inc. (META) and raised its price target from $775 to $820.
- The firm noted that daily active user growth for Meta's Muse AI assistant lags behind its 300,000 daily U.S. downloads, with 14-day retention at about 20%.
- Meta is scheduled to report third-quarter financial results on Wednesday, when spending and AI retention metrics will be in focus.
- Full-year capital expenditures for Meta are estimated to reach between $130 billion and $145 billion.

## Questions and answers

### Why did Morgan Stanley raise Meta's price target?

Morgan Stanley reiterated its Overweight rating and bumped its price target from $775 to $820 while reviewing Meta's AI investments, though it noted slow daily active user scaling for the Muse AI agent.

### How is Meta's Muse AI assistant performing?

Muse sees roughly 300,000 U.S. downloads per day, but its 14-day user retention rate is around 20%, showing that daily active users are not scaling as quickly as downloads.

### When does Meta report its next quarterly earnings?

Meta is scheduled to report third-quarter earnings after the market close on Wednesday, giving investors a closer look at revenue performance and capital expenditure plans.