Meta stock rockets 10% on price target increase, Muse AI downloads

Meta ( META ) stock rose more than 10% in intraday trading after Wells Fargo raised its price target on the company and its Meta Muse AI agent app hit the top spot on Apple's ( AAPL ) App Store.

In a note to investors, Ken Gawrelski raised his price target on the company from $640 to $796.

Gawrelski pointed to Meta's recent successful AI model launches, including its latest Muse Spark offering and the Muse assistant, as proof that the company "now has a story to tell" with regard to its AI capabilities and services.

Meta's AI fortunes mark a sharp turnaround from last year, when the company was dealing with AI model delays and questions about the billions it is spending on its AI infrastructure build-out.

Since then, CEO Mark Zuckerberg has rebuilt Meta's AI lab, hiring Scale.AI co-founder and CEO Alexandr Wang as Meta's chief AI officer.

The company now offers several models within its Muse AI family.

The price target change and strong showing from Muse come ahead of Meta's upcoming Meta Connect conference on Wednesday.

Zuckerberg is scheduled to deliver a keynote outlining the company's upcoming plans across both its AI and wearables devices.

Meta stock has struggled over the past 12 months, falling roughly 5% versus Amazon ( AMZN ) stock, which is up 38%, and Google ( GOOG , GOOGL ) stock, which rose 11%. Microsoft ( MSFT ) has barely outpaced Meta, which is down 4%.

But Meta stock has jumped significantly over the past three months, soaring 30%. Only Microsoft outpaced Meta, rocketing 35%.

Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley .