Shopify is letting Meta's new AI agent shop and check out on users' behalf

On September 22, Wall Street analysts have expressed optimism about Meta Platforms, believing its new AI agent Muse could unlock a fresh revenue stream for the social media giant and alter the company's approach to AI monetization. Launched on September 8, Muse is an AI assistant capable of performing tasks like sending emails, arranging travel, and facilitating transactions such as selling a car on behalf of a user.

The free version is available, with paid subscriptions costing $20 or $100 per month for more extensive use.

Since its debut, Meta's shares have climbed by more than 20%, outpacing the Magnificent 7 group of US tech companies. The stock's valuation has surged by over $200 billion, reaching a high point in over seven months as of the last trading day. J.P. Morgan analysts assert that Muse has the potential to become the most widely used consumer AI application since ChatGPT, citing strong product-market fit, Meta's extensive distribution network, and a free tier that lowers the barrier to entry.

The Muse app, available on iOS and Android but currently limited to the US and Canada, has amassed 2.8 million downloads in the first 12 days of its launch, surpassing OpenAI's ChatGPT's initial 12-day download count by 1.8 million compared to ChatGPT's 1.3 million. Early reviews highlight the app's appeal, particularly the agent's ability to execute multi-step tasks and workflows with minimal user input, as noted by BofA Global Research analysts.

The enthusiasm surrounding Muse has fueled a Wall Street tech rally, driving up Meta's shares by more than 11% and benefiting chipmakers AMD and Intel. AMD has even crossed the $1 trillion market valuation mark for the first time, attributed to the perception that Muse could invigorate the CPU market. Brokerage Jefferies estimates that if Muse captures 1 billion users by the end of 2027 with at least 3% of them subscribing to a paid version, it could generate $10.8 billion in annualized revenue, prompting Jefferies to raise its price target on Meta's stock to $875.

UBS Global Wealth Management analysts agree, highlighting Muse as early proof that consumer AI agents can achieve widespread adoption, presenting new AI monetization avenues beyond enterprise applications. Of the 64 brokerages covering Meta's stock, 57 maintain a "buy" rating or higher, with a median price target of $760 according to LSEG data.