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Rather than continuing to rely almost exclusively on online ads for its sales, Meta Platforms (NASDAQ: META) is looking to diversify its revenue streams with its new Muse agentic AI. However, one company isn’t playing ball.
Amazon (NASDAQ: AMZN) said it is blocking Muse from purchasing products on its website. Consumers are still using the personal AI agent to make purchases on other sites, though, and the AI model’s user base is growing faster than ChatGPT’s did in its early days.
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Amazon would prefer to create its own suite of AI agents instead. If it keeps Muse off its platform, these three AI stocks could be some of the biggest winners.
Shopify
The bullish scenario for Shopify is that Muse will change how people shop. A personal AI agent that is being rapidly adopted will streamline purchases, and it’s not allowed to consider buying through Amazon.
Amazon has effectively eliminated itself from competing for a lucrative e-commerce opportunity, but Shopify (NASDAQ: SHOP) has taken the opposite position. It partnered with Meta Platforms to streamline how Muse browses Shopify stores and buys items on consumers’ behalf.
“Shoppers find more. Shops sell more,” Zuckerberg said when touting the partnership. It’s perhaps the simplest way to describe the tailwind Shopify now enjoys due to its partnership.
The immediate catalyst comes with solid fundamentals, which included 34% year-over-year revenue growth in the second quarter. Shopify President Harley Finkelstein said the company is using AI to expand what’s possible for its customers while noting, “no one else comes close.”
Gross merchandise volume jumped by more than 30%, so it’s not like Shopify is relying on fees, ads, and subscription hikes to make extra money. Real customers are showing up more often, and that trend should continue with Muse. Shopify’s partnership with Meta Platforms can also incentivize more merchants to set up their shops on Shopify, and once that is done, switching costs make the platform stickier.
PayPal
Meta Platforms named PayPal (NASDAQ: PYPL) one of the payment options for Muse orders. The boosted e-commerce activity will translate into additional PayPal transactions.
PayPal isn’t as exciting as Shopify. It only posted 5% year-over-year revenue growth in the second quarter, and it remains a potential acquisition target. Net profit margins have been dipping, but remain above 10%.
