I=5
Analysts are bullish on new Muse AI agent
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Outperform, $860: Evercore ISI sees more than 50% chance that Meta can successfully roll out AI agents to both consumers and small businesses. It expects Meta expects to win material adoption and monetization over time from the more than 15 million small businesses operating on Meta Platforms.
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Neutral->Overweight, $640->$820: JPMorgan said the Muse AI agent climbed as high as No. 3 on the U.S. App Store on its second day, with early usage running at 10 times the level seen in training cohorts. JPMorgan said near-term monetization is not the priority, but highlighted potential opportunities through take-rate and subscription models. It projects 2027 and 2028 capex of $243 billion and $284 billion, respectively.
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Overweight, $780: KeyBanc KeyBanc highlighted three main differentiators for Muse: an intuitive, easy-to-use interface, Meta’s vast distribution reach and data resources, and a strong emphasis on privacy and security to foster user trust. It views user engagement as the primary measure of success for Muse.
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Mizuho Securities analyst Lloyd Walmsley described Muse as “a significant step in that direction,” highlighting the app’s unexpectedly polished experience, broad functionality, and free entry point.
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Morgan Stanley analyst Brian Nowak highlighted two critical ingredients for winning the agentic AI race: broad distribution and rich consumer data, both of which Meta possesses. He added that Muse represents one of the largest unpriced call options on Meta’s long-term earnings potential, but noted that the market will need clear evidence of user adoption and monetizable engagement before assigning a structurally higher valuation to the shares. Nowak also pointed out that its successful launch “could pose a new potential threat to the position of search.”
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Buy, $750: TD Cowen said Muse offering “could evolve into a notable revenue stream over the longer term” but they are not its medium-term revenue.
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Perform rating: Oppenheimer doesn’t see “Muse Agent as a game changer.”
