Zuckerberg to unveil new AI products as Meta’s Muse app tops charts

Meta's Muse, an AI-powered personal agent, has ignited debate over winners and losers in the market since its debut earlier this week. The app, which enables users to outsource tasks like shopping, travel booking, and form-filling to an AI assistant, has quickly risen to become the top free app on Apple's App Store and Google Play Store in the US and Canada.

Within just two weeks of its launch, Muse amassed 2.8 million downloads, boasting an impressive 55% average daily growth in its first 10 days, according to market intelligence firm Sensor Tower.

The success of Muse has sent ripples throughout various sectors, with several industries experiencing mixed fortunes. Financial stocks, which have traditionally been resistant to AI disruption, have taken a hit, with major banks such as JPMorgan and Wells Fargo falling by over 3% each. Brokerage Charles Schwab has also suffered, dropping almost 5% amid concerns that the AI agent could prompt users to switch to cheaper financial services.

Meanwhile, investors have rallied behind Meta and AI infrastructure-related companies, with Meta's shares soaring nearly 13% this week, marking their fifth consecutive week of gains. Additionally, Shopify's US-listed shares have jumped 11.4% following a deal to use Muse for checkouts, while PayPal has marginally gained after announcing support for the AI agent.

On the flip side, consumers-oriented companies such as TripAdvisor, Booking Holdings, Planet Fitness, Uber, Lyft, DoorDash, and The New York Times have all suffered losses of over 6%, 17%, 10%, and more respectively. The decline in these sectors can be attributed to fears that Muse may erode user loyalty and prompt them to seek alternative, more cost-effective options.

Despite the mixed results, some market strategists remain optimistic about Muse's potential. Michael O'Rourke, chief market strategist at JonesTrading, believes that Meta has "found lightning in a bottle" with the app, while B. Riley Wealth's Art Hogan argues that concerns over disruption are overstated, stating that users who trust their finances to Muse are likely not heavy spenders in those industries to begin with.

The development has also ignited a renewed interest in AI infrastructure, with the Philadelphia Semiconductor Index gaining 7% since Muse's launch and Nvidia and Advanced Micro Devices leading the charge. As Muse continues to captivate the tech world, its impact on the market remains to be seen.