Meta shares soar after launch of Muse AI

Meta's stock surged 4.5% on Thursday following an 11% increase on Monday. This jump reflects growing investor enthusiasm for Muse, Meta's new AI agent designed to generate revenue beyond advertising. The stock price rose to around $778, marking its highest level since July, which saw a sharp decline after two court rulings concerning the impact of Meta's social networks on young people's mental health.

In July 2025, Meta reported a $145 billion spending plan for artificial intelligence, but questions remain about the potential payoff.

Muse, launched on September 8 in the US and September 18 in Canada, is a multitasking AI assistant capable of performing tasks like booking trips, sending emails, or making purchases. Initially free, Muse has usage limits and an optional subscription plan at $20 or $100 per month for enhanced capabilities. Within two weeks of launch, Muse was downloaded 1.8 million times on iPhones in North America, outpacing ChatGPT's 1.3 million downloads when the latter's app debuted in May 2023, according to Apptopia.

During Meta's Connect conference, the company unveiled plans to integrate Muse into smart glasses and announced partnerships with retailers such as Walmart, potentially allowing Muse to earn commissions on purchases. However, e-commerce giant Amazon temporarily blocked Muse from using its platform after accusing Meta's software of failing to disclose its identity during web browsing and storing users' login details. Meta maintains that Muse does not access passwords or payment information.

JPMorgan raised its price target for Meta to $920, believing Muse could become the most widely used consumer AI application since ChatGPT. While some analysts are skeptical, a recent Oppenheimer survey revealed that only 8% of Americans would trust Meta to store their passwords for other apps, a requirement for agents to act on their behalf, compared to 30% for Google.

Despite competition from Threads, which reached 100 million sign-ups in five days following Meta's 2023 launch, growth has slowed, leaving Threads with around 140 million active daily users as of January.