Meta Has Created a "Killer Product": What Wall Street Is Saying About the New AI Assistant, Muse

Meta has earned praise from analysts for the successful launch of its new AI-powered chatbot; they believe the development could become a new source of revenue for the owner of Instagram and WhatsApp. The company’s stock closed slightly lower on September 22, but it is still trading a third higher than at the beginning of the month.

The assistant specializes in performing multi-step tasks: it can retrieve data from various accounts, fill out web forms, conduct negotiations, and make online purchases. What can we expect from the company now?

— “Although it’s still too early to draw conclusions, we believe Muse could become the most widely used consumer AI app since the [launch] of ChatGPT,” Reuters quotes JPMorgan analysts as saying. In their view, the app’s rapid success is due to the product’s strong alignment with market needs, Meta’s extensive distribution capabilities, and a free plan that lowers the barrier to trying the app and returning to it.

— “The app’s functionality resonates with users, particularly the agent’s ability to perform multi-step tasks and workflows with minimal user intervention,” according to analysts at BofA Global Research.

— “The market viewed Muse as a positive factor for the processor market, which is already facing significant supply constraints,” said Michael O’Rourke, chief market strategist at JonesTrading.

— Jefferies estimates that, assuming Muse attracts 1 billion users by the end of 2027 and at least 3% of them upgrade to a paid version, the app could generate $10.8 billion in annual revenue, according to Reuters. The chatbot’s success has prompted Jefferies to raise its price target for Meta shares to $875—18% above the closing price on September 21. “Before Muse was launched, investors completely dismissed the idea that Meta could release a personalized consumer AI agent, favoring (Alphabet) instead,” say Jefferies analysts led by Brent Till. Meta has created a “killer product” in the form of Muse, which, according to Jefferies, “turns everything on its head,” writes Barron’s.

— "Muse has provided 'the first evidence that consumer AI agents can become widespread, creating new opportunities to monetize AI beyond enterprise applications,'" noted analysts at UBS Global Wealth Management.

— The early success of Meta’s AI agent, Muse, shows how AI could eventually impact the labor market and lead to the displacement of some workers, according to Yahoo Finance. If Muse is capable of quickly performing tasks within a company, the question arises as to why people would be needed in some cases, the publication continued. “I really think it’s a matter of time—at some point, the impact of AI will begin to be felt,” said Torsten Slock, chief economist at Apollo Global Management, in an interview with Yahoo Finance. “The question remains: Will AI like Muse be used primarily by consumers or also by companies? To what extent will companies in your industry integrate this product into all the processes they handle?”

This article was AI-translated and verified by a human editor