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

Meta's Muse, the company's inaugural consumer product under CEO Alexandr Wang, has sparked debate over the consequences of a powerful personal AI agent in the US stock market. Muse, which enables users to delegate tasks like shopping, travel booking, and form-filling to an AI agent, has become the top free app on both Apple's App Store and Google Play Store in the US and Canada.

Since its launch, the app has amassed 2.8 million downloads, growing by an average of 55% each day over the first 10 days, according to market intelligence firm Sensor Tower.

The rapid success of Muse has worried analysts who fear it could disrupt various sectors by becoming a potent comparison-shopping tool. This could lead to users finding more affordable alternatives, potentially reducing loyalty to incumbent providers. Several sectors, including financials, booking companies, and ride-hailing services, have experienced declines as a result.

Financial stocks, in particular, have been hardest hit, with major banks like JPMorgan and Wells Fargo shedding more than 3% each in response to concerns that Muse might prompt users to switch to less expensive policies.

While some investors remain cautious about the potential impacts of Muse, others see the app as a significant win for Meta and AI infrastructure firms. Michael O’Rourke, chief market strategist at JonesTrading, believes that Meta has found "lightning in a bottle" with Muse and that partnering with the company could be highly beneficial.

Art Hogan, chief market strategist for B. Riley Wealth, disagrees, stating that concerns about the app disrupting industry practices are unfounded, as users would likely not rely heavily on financial services that Muse could provide.

Despite the mixed reactions, Meta's shares have surged nearly 13% this week, marking the fifth consecutive week of gains. The company's optimism is driven by the potential for Muse to generate substantial annual revenue, with estimates suggesting it could reach at least $28.5 billion by fiscal 2030. Shopify's US-listed shares have jumped 11.4% after the company announced plans to use Muse for checkout processing, while PayPal has seen a modest gain after agreeing to allow users to discover products and make purchases through the AI agent.

Moreover, Muse's success could accelerate AI compute demand, boosting chip stocks. The Philadelphia Semiconductor Index has gained 7% since the app's launch and is poised for its largest two-week rally since mid-August. Notably, Nvidia and Advanced Micro Devices have been among the top gainers, reflecting the increased interest in AI infrastructure buildout.