Meta shares jump over 5% as company launches Muse AI assistant
Meta's stock rose more than 5% after unveiling its Muse AI chatbot, with analysts raising price targets and citing the company's AI strategy.
Meta Platforms' shares climbed more than 5% on Wednesday following the launch of Muse, a new AI assistant integrated into the company's messaging apps. Analysts from Mizuho Securities said the product marks the start of a significant product cycle that the market has not yet priced in, maintaining an Outperform rating and a $750 price target. KeyBanc Capital Markets also upgraded its outlook, keeping an Overweight rating and setting a $780 target, noting that the market underestimates Meta's AI positioning.
Meta described Muse as a conversational agent that works like messaging a person, accessible through a dedicated app or via WhatsApp. CEO Mark Zuckerberg highlighted the tool's privacy features, saying a Secure Credential Store protects passwords and credit-card data and that Muse cannot read this information. He added that encryption is modeled on WhatsApp, meaning Meta cannot view the messages.
The stock, which has recovered most of its earlier-year losses, remains down about 1% year-to-date despite the recent rally.