Meta Platforms (META) stock closed higher on July 7 after the company launched a new artificial intelligence (AI) model for creating images called Muse Image.
Additionally, Erste Group analyst Hans Engel upgraded the Facebook-parent to “Buy,” citing its aggressive AI investments that he believes will translate to improved top- and bottom-line growth over time.
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Meta shares have been rather dull since the start of 2026, currently down about 5% versus the start of this year.
www.barchart.comSignificance of Muse Image for Meta Stock
The launch of Muse Image is bullish for META stock because it may serve as a vehicle to monetize the giant’s massive artificial intelligence infrastructure.
By integrating the model into Instagram, WhatsApp, and its flagship chatbot, the company stands to open up new revenue streams via its premium subscriptions.
Crucially, embedding Muse Image into the Advantage+ advertising platform will enable brands to instantly generate and refine on-brand ad variations through sketch-based edits.
This would dramatically reduce META’s reliance on third-party design models, lower operational friction for its 8 million advertisers, and maximize ad click-through rates, all of which could boost its core revenue.
Why Erste Group Upgraded META Shares Today
Also on Tuesday, Erste Group told clients that Meta’s financial metrics and operating margins are vastly outperforming its sector peers.
Despite a ballooning full-year capital expenditure forecast of at least $125 billion, its analyst Hans Engel remains confident that this infrastructure spend will lock in long-term fundamental growth.
Engel recommends owning META shares also because they are trading for under 20x forward earnings currently — a valuation multiple that makes them cheaper to own than other AI beneficiaries like Nvidia at nearly 23x.
Note that Meta Platforms ripped through its 50-day moving average (MA) on July 7, signaling the bullish momentum could sustain in the near term.
How High Can Meta Platforms Fly in 2026?
Other Wall Street analysts also seem to agree with Engel’s positive stance on Meta stock.
According to Barchart, the consensus rating on Meta Platforms sits at “Strong Buy,” with the mean price target of nearly $824 indicating potential upside of about 33% from current levels.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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