Wall Street expects Meta’s new AI agent to become a new revenue engine

Meta Platforms has captured the attention of Wall Street with its new AI agent, Muse AI, which has already garnered over 2.8 million downloads within its first 12 days of launch. The AI assistant, capable of handling tasks such as sending emails, booking travel, and completing transactions, is available on iOS and Android platforms in the US and Canada regions. The free basic version of Muse AI comes with subscription options priced at $20 and $100 per month for heavier usage.

Since its introduction on September 8, Meta's stock has surged more than 20%, outperforming the "Magnificent Seven" group of US tech companies. The increased market capitalization has reached its highest level in over seven months. JPMorgan Chase analysts have expressed optimism about Muse AI's 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 entry.

Early reviews indicate that users are finding Muse AI's functionality compelling, particularly its ability to execute multi-step tasks and workflows with minimal user intervention. Bank of America Global Research analysts have noted the promising reception of Muse AI, while Bank of America has raised its price target on Meta's stock to $875, driven by the potential for Muse AI to generate significant revenue.

UBS Global Wealth Management analysts have also expressed enthusiasm, highlighting the early evidence that consumer AI agents could achieve broad adoption and provide new AI monetization opportunities beyond enterprise applications.