Wall Street expects Meta’s AI agent Muse to shape into a new revenue engine

Wall Street's optimism over Meta Platforms has grown, as they believe the company's new AI agent Muse could generate a fresh revenue stream for the social media giant. Muse, unveiled on September 8, is an AI assistant capable of sending emails, booking travel, and facilitating transactions like selling a car on behalf of users. The free version of Muse is accessible to all, while subscriptions start at $20 (S$25) per month for more extensive usage.

Following Muse's launch, Meta's stock soared by over 20 percent, outperforming the "Magnificent 7" group of US tech companies during the same period. In just 12 days, the app garnered 2.8 million downloads, nearly matching the early adoption of OpenAI's ChatGPT, which secured 1.3 million downloads during the same timeframe. Initial reviews indicate that users appreciate Muse's capacity to execute multi-step tasks and workflows with minimal user intervention, adding to its appeal.

Tech analysts at various firms, including JP Morgan, BofA Global Research, and Jefferies, have expressed confidence in Muse's potential. JP Morgan analysts anticipate that Muse could become the most widely used consumer AI application since ChatGPT due to its strong product-market fit, Meta's extensive distribution reach, and the free tier that lowers the barrier to entry.

Jefferies analysts estimate that if Muse accumulates one billion users by the end of 2027 and at least 3 percent transition to a paid version, the company could generate $10.8 billion in annualized revenue, prompting them to raise their price target on Meta's stock to $875.

Meta's Muse has not been without challenges, such as setbacks with its Llama 4 models in 2025, which faced criticism over benchmark results. However, the stock rally following Muse's launch demonstrates that investors remain optimistic about Meta's potential to succeed with consumer AI agents, despite past disappointments. Currently, 57 out of 64 brokerages covering Meta's stock rate it "buy" or higher, with a median price target of $760, according to LSEG data.