Meta stock has surged after the launch of its AI agent Muse, as investors get a clearer idea of how the company could make money from consumer AI. The launch has given investors a look at how Meta could turn AI into a new business beyond its traditional social media advertising model.
The division has recorded more than $85 billion in losses over the years, creating another financial burden for the company, according to Yahoo Finance. That changed after Meta launched Muse.
The AI agent has climbed app charts and recorded millions of downloads in its first two weeks, showing strong early interest in the product, according to Yahoo Finance. Semiconductor companies have benefited from the growth of agentic AI, while large companies have continued spending heavily on AI tools, according to Yahoo Finance. “Then out of nowhere came Muse,” Futurum CEO Daniel Newman told Yahoo Finance, highlighting how quickly the new product changed the conversation around Meta’s AI strategy. KeyBanc’s Patterson said Meta has now managed to build a consumer-facing AI product at a time when many other companies have struggled to do so. He said this has changed the way Wall Street views Meta, with the company moving from being seen as a laggard to being viewed as a leader again.
Muse has quickly gained attention from consumers after its launch. Meta has also faced criticism over social media addiction claims. These legal and public concerns have added pressure on the company and its stock. Meta’s Reality Labs business has been another major concern for investors. Much of the AI investment story this year has focused on chipmakers and businesses using AI to improve productivity. Companies such as OpenAI , Anthropic and Google’s Gemini had received much of the attention in consumer and agentic AI. Meta was not seen as the main focus of the AI race for much of the year.
More Muse users could boost revenue
The stock currently has 73 Buy ratings, six Hold ratings and zero Sell ratings. The current consensus price target stands at $787, according to Yahoo Finance. Analyst sentiment around Meta has also become very positive. Several analysts have raised their price targets for Meta over the past week.
