Meta's Muse rekindles fears over winners and losers as personal AI agent emerges

This week, Meta's Muse, a new consumer product spearheaded by CEO Alexandr Wang, has caused a stir in US stock markets. Muse, an AI-driven assistant that handles tasks like shopping, travel bookings, and form-filling, has outperformed ChatGPT to become the most downloaded free app on Apple's App Store and Google Play Store in the US and Canada. Within two weeks of its release, Muse accumulated 2.8 million downloads, with a 55% increase in daily downloads during the initial 10 days, according to Sensor Tower.

The app's popularity has sparked concerns about the potential shift in consumer loyalty, as it could emerge as a powerful competitor in comparison-shopping. Consequently, several sectors, including financials, travel, and publishing, have experienced declines. Financial stocks, particularly big banks such as JPMorgan and Wells Fargo, and brokerage Charles Schwab, have lost over 3% and nearly 5% respectively due to worries that Muse could prompt customers to opt for cheaper alternatives.

However, not all stocks have suffered. Meta's shares have climbed 13% this week, marking the company's fifth consecutive week of gains. Shopify and PayPal, which have partnered with Muse to process checkouts and discover products, have also seen a rise in their stock prices. Moreover, the demand for AI infrastructure due to Muse's emergence is likely to drive the growth of chip stocks, as evidenced by the 7% increase in the Philadelphia Semiconductor Index since the app's launch.