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Wall Street expects Meta's AI agent to shape into a new revenue engine
Reuters • • general
Key Points:
- Wall Street has turned bullish on Meta Platforms following the launch of its AI assistant Muse, which could create a new revenue stream and reshape the company's AI monetization prospects.
- Muse, launched on September 8, is an AI assistant capable of sending emails, booking travel, and completing transactions, with a free basic version and subscription tiers at $20 and $100 per month.
- The app has achieved 2.8 million downloads in its first 12 days in the US and Canada, outperforming ChatGPT's initial launch downloads, and early reviews praise its multi-step task execution capabilities.
- Analysts from J.P. Morgan, Jefferies, and UBS highlight Muse's strong product-market fit, broad adoption potential, and significant revenue opportunities, with Jefferies projecting up to $10.8 billion in annualized revenue by 2027 if user growth targets are met.
- Meta's stock has responded positively, rising over 11% recently, with 57 out of 64 brokerages rating it a "buy" or higher and raising price targets amid optimism about Muse's impact.
