Meta shares soar after launch of Muse AI

Meta's shares surged to summer 2025 highs on September 24 after the launch of Muse AI, the social media giant's innovative multitasking AI assistant. The stock gained 4.5% on the day, marking its biggest single-day rise since April 2025. Muse is designed to help users with tasks like booking trips, sending emails, or making purchases, with a free version and optional paid subscriptions.

In just two weeks, Muse was downloaded 1.8 million times on iPhones in North America, surpassing the initial download of ChatGPT when its app launched in May 2023. However, Amazon blocked Muse from using its site on September 20, citing concerns about Muse's transparency and data handling. Despite this setback, Meta's stock has recovered from a late-March low of around US$525 per share, driven by optimism that Muse could become the most widely used consumer AI application since ChatGPT.

JPMorgan raised its price target for Meta to US$920, believing Muse could achieve this status. However, some analysts remain skeptical, citing low trust levels among Americans for Meta to store their passwords for other apps. Despite this, Meta's vast user base, exceeding 3.6 billion daily users, could fuel Muse's growth, currently available in the US and Canada with plans for expansion to Meta's smart glasses and partnerships with retailers like Walmart.