Meta’s Muse Could Become Most Widely Used Consumer AI App Since ChatGPT, JPMorgan Says — BofA Sees Improving AI Return Sentiment
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Muse is the No. 1 free app in Apple’s U.S. App Store and holds a 4.9-star rating across more than 25,000 reviews, per the BofA note on TheFly.
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JPMorgan reiterated an ‘Overweight’ rating and $820 target, while BofA maintained a ‘Buy’ rating and $810 target.
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Just 1% of Meta’s 3.6 billion users paying $20 a month could generate about $8 billion in revenue for Meta
Meta Platforms Inc.’s (META) new Muse AI agent is drawing increasingly positive commentary from analysts after climbing to the top of Apple’s U.S. App Store, with JPMorgan saying the product could help Meta demonstrate artificial-intelligence returns outside its core advertising business.
Muse is currently the No. 1 most-downloaded free app in the U.S. App Store, JPMorgan said, adding that the combination of the product’s virality and Meta’s powerful distribution platform has made the buzz around it “quite palpable.”
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While adoption is still in its early stages, the firm said Muse has the potential to become the most widely used consumer AI application since ChatGPT, per TheFly.
JPMorgan expects adoption and engagement to continue ramping and believes Muse could begin proving out AI returns beyond Meta’s advertising platform. The analyst sees a potential total addressable market in the tens of trillions of dollars and reiterated its ‘Overweight’ rating and $820 price target on META stock.
BofA Says Muse Is Improving The AI Investment Narrative
BofA analyst Justin Post also pointed to the app’s early reception as an encouraging signal for Meta’s broader AI strategy.
Muse, which launched on Sept. 8, quickly reached No. 1 in the Productivity category on the App Store and has maintained a 4.9-star rating across more than 25,000 reviews, per TheFly.
BofA believes investors have been concerned about whether Meta can build a differentiated AI product, and sees Muse’s early success driving greater optimism about potential returns on the company’s substantial AI investments. The firm maintained its ‘Buy’ rating on Meta with a target price of $810.
Evercore Sees Multiple Revenue Paths For Muse
According to Mark Mahaney, Evercore ISI senior managing director and head of Internet research, Muse could begin answering a question investors have had around Meta’s heavy AI spending: whether that investment can generate returns outside the company’s existing businesses.
