Meta Platforms AI agent lifts revenue expectations on Wall Street

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Meta AI agent lifts revenue

Highlights

Meta Platforms shares have surged over 20% since Muse's Sept. 8 launch, adding more than $200 billion in market value and reaching a seven-month high.
Muse recorded 2.8 million downloads in its first 12 days, outpacing ChatGPT's comparable launch, with analysts citing strong product-market fit and user engagement.
Jefferies estimates Muse could generate $10.8 billion in annualized revenue if it hits 1 billion users with 3% paid conversion by 2027, raising Meta's price target to $875.

Muse launch drives analyst upgrades

As reported by Reuters, Wall Street is turning more bullish on Meta Platforms after Muse launched on Sept. 8 with features that let users send emails, book travel and complete transactions such as selling a car on a user's behalf. The basic version is free, while subscriptions cost $20 and $100 a month for heavier use.

Since the launch, Meta shares have surged more than 20%, outperforming the Magnificent 7 group of U.S. technology companies over the same period. The stock has added more than $200 billion in market value and reaches its highest level in more than seven months as of the last close.

J.P.Morgan analysts say it is still early, but they believe Muse has the potential to become the most widely used consumer AI application since ChatGPT. They attribute the early traction to strong product-market fit, Meta's distribution reach and a free tier that lowers the barrier to trial and repeat use.

According to Apptopia data, the Muse app, available on iOS and Android in the U.S. and Canada, records 2.8 million downloads in its first 12 days. On a comparable first-12-day basis, the report says Muse posts 1.8 million downloads versus 1.3 million for OpenAI's ChatGPT.

BofA Global Research analysts say early reviews indicate the product's functionality is resonating with users, particularly its ability to execute multi-step tasks and workflows with limited user intervention.

Broader AI monetization and chip demand impact

Excitement around Muse helps spark a Wall Street technology rally on Monday, lifting Meta shares more than 11% and boosting chipmakers including AMD and Intel. AMD also crosses the $1 trillion valuation mark for the first time.

Michael O'Rourke, chief market strategist at JonesTrading, says the market interprets Muse as a positive for the already significantly bottlenecked CPU market. The reaction suggests investors are linking consumer AI agent adoption not only to software revenue, but also to higher infrastructure demand across the semiconductor supply chain.

Jefferies estimates that if Muse reaches 1 billion users by the end of 2027 and at least 3% convert to a paid version, it could generate $10.8 billion in annualized revenue. The brokerage also raises its Meta price target to $875.

UBS Global Wealth Management analysts say Meta's Muse offers early evidence that consumer AI agents can achieve broad adoption and create monetization opportunities beyond enterprise applications. Of the 64 brokerages covering Meta, 57 rate the stock buy or higher, with a median price target of $760, according to LSEG data.

In our earlier coverage of Meta’s Muse-driven tech rally, we described how the AI agent’s debut sparked a sharp jump in Meta shares and helped lift sentiment across major U.S. technology stocks. We also noted that the upbeat AI trade coincided with wider market crosscurrents, as investors monitored geopolitical events in New York and their potential impact on risk appetite and oil prices.

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