Meta Platforms shares have gained roughly 16% this week following the launch of its Muse AI agent, leaving the stock about $10 below its August 2025 all-time closing high. KeyBanc managing director Justin Patterson raised his price target to $900 and maintained an Outperform rating, saying Meta was trading at about 21 to 23 times forward earnings based on the bank’s projections. The recovery follows repeated investor concerns over rising AI investment, falling free cash flow, legal claims related to social media addiction and the cost of the company’s Reality Labs initiative. Meta shares also fell more than 8% in April after the company outlined higher AI spending and dropped another 8% in late July after a weakly received quarterly report. Earlier setbacks included a record 26% decline in February 2022 after Meta reported its first quarterly drop in daily active users and warned that Apple’s iOS privacy changes could reduce advertising revenue by $10 billion. Analysts cited CEO Mark Zuckerberg’s history of cutting costs and changing strategy during periods of investor pressure.