Key Highlights
- META shares rallied 11.4% Monday, fueled by surging demand for its Muse AI personal assistant
- The Muse app claimed the top position on Apple’s App Store with 264,000 U.S. downloads on September 19
- Wells Fargo analysts increased their price target to $796 from $640 while keeping an Overweight rating
- The AI assistant offers three pricing tiers—free, $20/month, and $100/month—establishing a direct monetization strategy
- Year-to-date, META has climbed 12.1% and maintains a P/E ratio of 25, lower than the S&P 500 benchmark
Meta Platforms (META) experienced a powerful 11.4% rally on Monday, pushing shares to $741.25, as market optimism surrounding the company’s Muse AI personal assistant reached unprecedented levels.
The impressive gain followed Muse’s ascent to the top ranking on Apple’s App Store. Additionally, Wells Fargo’s Ken Gawrelski upgraded his price objective from $640 to $796 while reaffirming his Overweight stance on the stock.
Gawrelski highlighted that recent model releases and Muse’s promising early adoption give Meta a compelling narrative entering the Meta Connect conference scheduled for September 23-24.
Data from SensorTower referenced by Wells Fargo shows that Muse generated a peak of 264,000 downloads in the United States on September 19, while daily active users reached 448,000 on September 18.
Meta introduced Muse in the United States on September 8 as an AI-powered personal assistant capable of managing emails, arranging travel, completing forms, and operating continuously even when the application is closed. The service is accessible through iOS, Android, muse.ai, and WhatsApp.
Within just five days of its debut, the application accumulated 600,000 downloads. Such rapid adoption has drawn parallels to ChatGPT’s initial launch momentum.
The Muse assistant operates on Meta’s Muse Spark architecture, which the company describes as its most advanced model for executing task-oriented operations. This same technology drives Meta AI functionality throughout Facebook, Instagram, WhatsApp, Messenger, and Meta’s augmented reality eyewear.
Revenue Strategy Takes Shape
Meta has structured Muse with a free access level complemented by premium subscriptions at $20 and $100 per month. This tiered approach provides the company with a straightforward mechanism to generate returns on its AI infrastructure investments.
CEO Mark Zuckerberg strategically positioned the free tier, stating the assistant “is going to make you money and save you money, and that is how it’s going to pay for itself.”
Mizuho’s Lloyd Walmsley characterized the Muse rollout as an important milestone in demonstrating tangible financial outcomes from Meta’s substantial AI expenditures.
Meta’s stock has appreciated 21% in the two weeks since Muse’s debut. Monday’s powerful advance created a ripple effect across CPU-related stocks, with Arm, Intel, and AMD all posting gains during the session.
Attractive Valuation Metrics Persist
Even after Monday’s substantial rally, META maintains a price-to-earnings multiple near 25, which sits below the S&P 500’s typical valuation range.
The company is projected to deliver 26.5% revenue growth this year, reaching $254.1 billion, and these estimates do not factor in any potential contributions from Muse subscriptions.
Shares are currently changing hands around $741, approaching but remaining under the 52-week peak of $770.60.
The upcoming Meta Connect conference on September 23-24 is anticipated to feature additional AI product reveals and updates.
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