Meta’s AI Agent Muse Sparks Wall Street Optimism Over New Revenue Stream

Wall Street is growing bullish on Meta Platforms as its newly launched AI agent, Muse, raises expectations of a potential new revenue stream and expanded AI monetization opportunities. Launched on September 8, Muse can perform tasks such as sending emails, booking travel and completing transactions on behalf of users. While its basic version is free, subscriptions for heavier usage are priced at $20 and $100 per month. Since its launch, Meta shares have surged more than 20%, adding over $200 billion in market value and reaching their highest level in more than seven months.

Muse, available on iOS and Android in the US and Canada, recorded 2.8 million downloads during its first 12 days, according to Apptopia. Early reviews have highlighted its ability to execute multi-step tasks with limited user intervention. J.P. Morgan analysts noted the app’s potential to become a widely used consumer AI application, citing Meta’s extensive distribution network and accessible free tier. Meanwhile, enthusiasm surrounding Muse fuelled a broader technology rally on Monday, lifting Meta shares more than 11% and boosting chipmakers such as AMD and Intel.

Analysts see significant revenue potential if Muse achieves widespread adoption. Jefferies estimated that reaching one billion users by the end of 2027, with at least 3% converting to paid subscriptions, could generate $10.8 billion in annualised revenue. The brokerage also raised its price target on Meta to $875. UBS Global Wealth Management described Muse as early evidence of consumer AI agents’ potential to gain broad adoption beyond enterprise applications. According to LSEG data, 57 of the 64 brokerages covering Meta rate its stock “buy” or higher, with a median price target of $760.

Pic Courtesy: google/ images are subject to copyright