Muse Could Account for Up to 8% of Meta's Revenue by 2030, According to Deutsche Bank. Why This Matters
Deutsche Bank's forecast was released after the number of Muse downloads exceeded 5 million in app stores for smartphones and Android devices / Photo: Robert Way / Shutterstock.com
Meta’s AI agent Muse could generate annual revenue ranging from $2.4 billion to $36 billion by the end of the decade, according to Deutsche Bank analyst Benjamin Black, whose report is cited by Yahoo Finance. At the upper end of this range, Muse could account for up to 8% of Meta Platforms’ total revenue by 2030, Black estimated.
The analyst’s forecast came after the number of Muse downloads in the Apple and Google stores exceeded 5 million, according to TipRanks. The estimate of $36 billion in potential revenue assumes that Muse will become a service that people use frequently enough to generate revenue for Meta from transaction fees, paid subscriptions, and, eventually, advertising, the publication explains.
The analyst believes that Muse has the potential to become a “constantly available personal assistant” for users. The service has already demonstrated an unusually strong start. “Muse has taken off literally like a rocket and is significantly ahead of recent AI app launches,” The Fly quotes the analyst as saying. Black believes that Meta has managed to find an untapped niche among existing AI agents, making Muse appear “virtually unique” at this point.
Meta has several ways to monetize Muse, according to Deutsche Bank. The AI agent can help users make purchases, and Meta can earn a small commission on those transactions. Muse is already integrated with the Shopify e-commerce platform and the payment company PayPal, according to Yahoo Finance. In addition, Meta has expanded the agent’s capabilities for small businesses: thanks to these integrations, it can help merchants manage sales and perform other day-to-day tasks.
"Muse can generate revenue directly from transactions while simultaneously funneling more money into Meta's core advertising business, which makes the growth potential MUCH greater," Yahoo quotes a note from a Futurum Equities strategist as saying.
Meta is expanding its line of Muse devices. In late September, the company unveiled the Muse Charm—a standalone, pocket-sized gadget designed exclusively for voice interaction with an agent. At the same time, Mark Zuckerberg demonstrated a concept showing how the agent will be integrated into VR headsets and Meta Ray-Bans.
In trading on October 5, Meta shares are up more than 2%. Analysts are bullish on the stock of the company that owns Facebook and Instagram, which has risen more than 20% over the past month. According to MarketWatch, 61 out of 69 analysts tracking Meta shares recommend buying them, seven recommend holding, and one recommends selling. Their average price target is $793.2, which is 9% higher than the closing price on October 2.
This article was AI-translated and verified by a human editor
