Investors Bet on Meta's New AI Agent Muse as Potential Revenue Driver
Wall Street analysts are optimistic that Meta's Muse AI assistant could generate significant new revenue, with early user adoption outpacing rivals and several brokerages raising price targets for the company.
Meta Platforms' AI assistant Muse, launched on Sept. 8, can perform tasks such as sending emails, booking travel and completing transactions for users. The service is offered for free, with subscription tiers of $20 and $100 per month for higher usage. Within the first 12 days, the app recorded 2.8 million downloads in the United States and Canada, surpassing the initial download figures for OpenAI's ChatGPT over a comparable period.
Shares of Meta rose 1.5% in early trading after an 11% jump the previous day. Analysts at J.P. Morgan said Muse shows strong product-market fit and benefits from Meta's extensive distribution network, noting its free tier lowers barriers to trial and repeat use. Bank of America Global Research highlighted the app's ability to execute multi-step tasks with minimal user input, while JonesTrading's chief market strategist said the market views Muse as a positive development for the constrained CPU market.
Jefferies projected that if Muse reaches one billion users by the end of 2027 and 3% convert to paid plans, it could generate $10.8 billion in annual revenue, prompting the firm to raise its price target for Meta stock to $875. UBS Global Wealth Management analysts described Muse as early evidence that consumer AI agents can achieve broad adoption and create new monetization opportunities beyond enterprise solutions. Of 64 brokerages covering Meta, 57 rate the stock as a "buy" or higher, with a median price target of $760.
"While it is still early, we believe Muse has the potential to become the most widely used consumer AI application since ChatGPT," J.P. Morgan analysts wrote.
"Prior to Muse, investors had completely dismissed the idea that Meta would be able to release a personalized consumer AI agent, favoring Alphabet instead," Jefferies analysts led by Brent Thill said.
The Muse launch follows previous challenges for Meta's AI efforts, including criticism of its Llama 4 models released last year.