Meta Shares Drop as Analysts Split Over Heavy AI Capex Versus Monetization

Meta Platforms shares fell about 3% as Wall Street delivered diverging targets ahead of its October 21 third-quarter earnings report. Goldman Sachs cut its price target from $860 to $762, warning about escalating operating expenses and infrastructure costs heading into 2027. Conversely, Guggenheim lifted its target to $850 from $700, and UBS raised its target to $884 from $715, pointing to digital advertising gains and rapid adoption of the Muse AI agent, which grew to 1.3 million daily active users in five weeks. However, Guggenheim also lifted its 2027 capex forecast to $225 billion, flagging constrained cash flow through 2028.