I=6
Analysts welcomed the release of Meta’s Muse Spark LLM
-
Overweight, $825: JPMorgan pointed out that the launch of Muse Spark should provide increased confidence on its scaling ability and improve investor sentiment.
-
Buy, $1,144->$1,015: Rosenblatt said the launch of Muse Spark is encouraging news as it reduces skepticism that Meta is spending buckets and floundering in AI. However, it said it trimmed its estimates for Meta’s Q2 through Q4 as spike in gas prices will impact consumer spending.
-
Overweight, $855->$760: KeyBanc said the reduced price target reflects a more conservative multiple amid market volatility. It said the release of Muse Spark shows Meta’s Superintelligence has made meaningful progress over a 9-month period. It added that recent ad checks leave it confident of a 20%+ medium-term growth.
-
Outperform, $850: Mizuho sees the earlier-than-expected launch of Muse Spark as a positive indicator that Meta can compete in the frontier large language models. Mizuho believes driving usage, especially around the shopping mode could unlock significant monetization potential. However, Mizuho said it’s critical for Meta to provide more specifics on how it plans to productize its models beyond the chatbots.
-
Outperform: William Blair said the release of Muse Spark provide some relief that Meta has delivered on a new model after delays and some past criticism on previous AI models. It pointed out that future models will likely be measured on AI performance metrics and to what extent Meta continues to make progress.
-
Buy, $885: Bofa said the earlier release of Muse Spark following reports that it could be delayed helps clear an uncertainty overhang for the stock. It added that Meta outlined a roadmap of improved LLMs throughout the year, suggesting potential for performance gains across upcoming model releases.
