Deutsche Bank: Muse could account for up to 8% of Meta’s total revenue by 2030
Meta's Muse AI agent has been downloaded more than 5 million times in its short time in the market / Photo: Robert Way / Shutterstock.com
Annual revenue from Meta’s Muse AI agent is expected between $2.4 billion and $36 billion by the end of the decade, reckons Deutsche Bank analyst Benjamin Black, whose note was cited by Yahoo Finance. At the upper end of that range, Muse could account for as much as 8% of Meta Platforms’ total revenue by 2030, Black estimates.
The forecast came after Muse surpassed 5 million downloads in the Apple and Google app stores, notes TipRanks. The $36 billion estimate assumes Muse becomes a service that people use frequently enough to generate revenue for Meta from transaction fees, paid subscriptions, and, eventually, advertising.
Black believes Muse has the potential to become an “always-on personal assistant for consumers.” It has already made an unusually strong start. “Muse has taken off electrically, tracking far ahead of recent app launches within the AI space,” The Fly quotes the Deutsche Bank note as saying. Black believes Meta has found a clear gap among existing AI agent offerings, with Muse being “virtually unique.”
Meta has several ways to make money from Muse, Black explains. The AI agent can help users make purchases, allowing Meta to collect a small fee on those transactions. Muse has already been integrated with e-commerce platform Shopify and payments company PayPal, Yahoo Finance writes. Meta has also expanded Muse’s capabilities for small businesses: its integrations allow the agent to help merchants manage sales and perform other everyday tasks.
“So Muse can monetize the transaction itself while also feeding more dollars back into Meta’s core ad business, which makes the upside MUCH bigger,” Yahoo Finance quotes the Futurum Equities chief strategist Shay Boloor as saying.
Meta is expanding its lineup of devices for Muse. In late September, the company unveiled Muse Charm, a standalone pocket device built exclusively for voice interaction with the agent. Mark Zuckerberg also demonstrated how the agent will be integrated into Meta VR glasses and Ray-Ban Meta glasses.
Meta shares are up more than 2% in Monday trading as of this writing. Wall Street is upbeat on the parent stock of Facebook and Instagram, which has gained more than 20% just over the last month. According to MarketWatch data, 61 of the 69 analysts covering Meta have “buy” calls, seven have “hold” ratings, and only one has a “sell” recommendation. Their average target price is $793.20 per share, 9% above Friday’s close.
