TLDR
- Meta launched Muse, a personal AI agent that can shop, book travel, manage calendars, and send messages
- Muse hit the number three spot in the U.S. App Store on its second day
- J.P. Morgan upgraded META to Overweight, raising its price target from $640 to $820
- Evercore ISI reiterated an Outperform rating with an $860 price target
- Oppenheimer is skeptical, citing consumer subscription fatigue and data trust issues with Meta
Meta Platforms launched Muse, its personal consumer AI agent, on Tuesday, and the reaction on Wall Street has been anything but unanimous.
Meta stock rose 0.2% to $654.82 on Thursday, a day after gaining 6.6%. The launch of Muse is being seen as a potential turning point for the company, but analysts are divided on how much it will actually move the needle.
Muse can shop online, plan travel, purchase tickets, schedule appointments, manage calendars, and send emails and messages. On its second day of availability, it climbed to the number three spot in the U.S. App Store.
That kind of early traction caught J.P. Morgan’s attention. Analyst Doug Anmuth upgraded Meta to Overweight from Neutral, lifting his price target from $640 to $820. That new target implies roughly 25% upside from current trading levels.
Anmuth wrote that Meta still has “meaningful upside potential,” pointing to the company’s early-stage rollout of frontier models and AI products beyond advertising. He described frontier models as “at the core of Meta’s product and monetization pipeline over a multi-year period.”
He also noted that while monetization is not the immediate focus for Muse, Meta has opportunities through a commission model and subscriptions down the line.
Bulls Point to Scale and Platform Reach
Evercore ISI also stayed positive, reiterating its Outperform rating and $860 price target. The firm said it sees a greater than 50% chance that Meta can successfully roll out AI agents to both consumers and small businesses.
Evercore pointed to Meta’s 3.6 billion daily users and noted that around 15 million small businesses globally currently operate on Facebook, Instagram, and WhatsApp. The firm expects material adoption and monetization to follow over time.
KeyBanc kept its Overweight rating on Meta with a $780 price target, highlighting Muse’s focus on privacy and security. Bernstein also reiterated an Outperform, noting Meta is on track to surpass Google Search in advertising revenue this year.
Not Everyone Is Buying It
Oppenheimer analyst Jason Helfstein was less enthusiastic. The firm reiterated its Perform rating and said Muse is unlikely to be a “game changer” for Meta.
“We remain skeptical of the financial benefits,” Helfstein wrote.
His concern centers on consumer subscription fatigue. With Alphabet’s Gemini and OpenAI’s ChatGPT already in the market, Helfstein questions whether enough users will pay for yet another AI service long term.
He also flagged ongoing trust issues. U.S. consumers remain wary of Meta when it comes to data privacy and password sharing, and Helfstein noted Muse requires full password access to be useful for e-commerce.
“New Siri via Gemini and next version of ChatGPT could support such activity,” he added, suggesting the competition is not standing still.
Meta’s gross profit margins stand at 81.75%, with revenue growth of 27.65%. Wall Street’s price targets for the stock currently range from $580 to $1,000.
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