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Meta gets price-target boost as JPMorgan says Muse agent has potential to become the top AI application since ChatGPT
Confirmed
In Short: J.P. Morgan analysts believe Muse has the potential to become the most widely used consumer AI application since ChatGPT, citing strong product-market fit, Meta's distribution reach, and a free tier that lowers the barrier to trial and repeat use.
Meta's Muse, an AI assistant launched on September 8, has seen significant early success, with 2.8 million downloads in its first 12 days, according to Apptopia.
Muse, available on iOS and Android in the US and Canada, can send emails, book travel, and complete transactions such as selling a car on behalf of a user.
Early reviews suggest that Muse's ability to execute multi-step tasks and workflows with limited user intervention is resonating with users.
Since its launch, Meta's stock has surged more than 20%, outpacing the 'Magnificent 7' group of US tech companies.
Analysts at J.P. Morgan upgraded Meta's stock to 'overweight' and raised their price target to $820 from $640, while Jefferies lifted their price target to $875 from $710.
Meta CEO Mark Zuckerberg is set to give a keynote address at 7 p.m., potentially providing further updates on the company's AI strategy.
Muse's success has also sparked a Wall Street tech rally, lifting Meta shares more than 11% and boosting chipmakers like AMD and Intel.
However, Amazon has not authorized Muse to access its store and has asked Meta to remove the e-commerce giant from the experience.
Meta said it expects AI agents to operate transparently and provide an opt-out option, addressing concerns about safety and reliability.
Analysts are optimistic that Muse could open a new revenue stream for Meta and reshape the company's AI monetization prospects.
Meta's Muse comes after a series of setbacks with its Llama 4 models last year, including criticism over benchmark results reported for early versions.
What this adds
Analysts are optimistic about Muse's potential to drive significant growth for Meta, but the app's long-term success remains to be seen.
What's confirmed
- Meta's Muse, an AI assistant launched on September 8, has seen significant early success, with 2.8 million downloads in its first 12 days, according to Apptopia.
- Muse, available on iOS and Android in the US and Canada, can send emails, book travel, and complete transactions such as selling a car on behalf of a user.
- Early reviews suggest that Muse's ability to execute multi-step tasks and workflows with limited user intervention is resonating with users.
- Since its launch, Meta's stock has surged more than 20%, outpacing the 'Magnificent 7' group of US tech companies.
- Analysts at J.P. Morgan upgraded Meta's stock to 'overweight' and raised their price target to $820 from $640, while Jefferies lifted their price target to $875 from $710.
- Meta CEO Mark Zuckerberg is set to give a keynote address at 7 p.m., potentially providing further updates on the company's AI strategy.
- Muse's success has also sparked a Wall Street tech rally, lifting Meta shares more than 11% and boosting chipmakers like AMD and Intel.
- However, Amazon has not authorized Muse to access its store and has asked Meta to remove the e-commerce giant from the experience.
- Meta said it expects AI agents to operate transparently and provide an opt-out option, addressing concerns about safety and reliability.
- Analysts are optimistic that Muse could open a new revenue stream for Meta and reshape the company's AI monetization prospects.
- Meta's Muse comes after a series of setbacks with its Llama 4 models last year, including criticism over benchmark results reported for early versions.
What's still developing
- "While it is still early, we believe that Muse has the potential to become the most widely used consumer AI application since ChatGPT," J.P.Morgan analysts said in a note, crediting the app's early traction to strong product-market fit, Meta's distribution reach and a free tier that lowers the barrier to trial and repeat use.
- "The market has interpreted Muse as a boon for the already significantly bottlenecked CPU market," said Michael O'Rourke, chief market strategist at JonesTrading.
- Of the 64 brokerages that cover Meta's stock, 57 rate it "buy" or higher with a median price target of $760, according to data compiled by LSEG. "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.
- If compared on similar metrics to the first 12 days of OpenAI's ChatGPT, Muse has 1.8 million downloads versus ChatGPT's 1.3 million.
- The analysts told clients they believe Meta’s Muse “has all the signs of a killer app,” calling it “better than many gave META credit for” and citing “unprecedented” adoption by consumers in the wake of this month’s launch.
- That could lead to an “outsized monetization opportunity” for Meta from subscriptions and commerce that “flips the narrative” around Meta’s competitiveness, wrote Jefferies.
- “The Muse Is Loose - Raising PT to $875.” JPMorgan.
- “The Models and Agents are Here; Upgrading to Overweight, $820 PT.” Get personalized, AI-powered answers built on 27+ years of trusted expertise.
- Meta's recently launched Muse personal artificial intelligence (AI) agent app rose to the top of the Apple App Store after it launched earlier this month.
- The Muse AI agent debuted in early September and is designed to access a person's apps across categories like email, calendar, payments, health, shopping and the smart home, the company said after the launch.
- Meta said that users can tell Muse what they need to get done, and it will take action using the Muse Spark model that the company built for real-world agentic work.
- The company said that once a user shares a goal with Muse, it helps them develop a personalized plan and coordinate their time and resources, while advancing the work on its own – opening browsers, filling out forms, and even negotiating on the user's behalf.