Meta shares jumped roughly 7% during Wednesday's trading following the announcement of the new AI agent, Muse. The standalone personal AI agent, supported by apps/platforms including Facebook, Instagram, WhatsApp, and Messenger, was met with a positive reaction from analysts.
KeyBanc maintained a $780 price target on Meta, while Morgan Stanley estimated a staggering $30 trillion total addressable market (TAM) for consumer agentic tasks across e-commerce, travel, digital ads, and daily logistics. Lloyd Walmsley of Mizuho Securities noted that investors have been eager to see a concrete return on Meta's massive infrastructure spending, calling Muse “a significant step in that direction” and pointing to the app's unexpected polish, broad functionality, and free entry price.
Justin Patterson of KeyBanc stated, “As with other Meta apps, we view engagement as the initial barometer of success, with monetization following over time.” Brian Nowak of Morgan Stanley highlighted that winning the agentic battle requires broad-based distribution and rich consumer datasets, and noted that a successful rollout for Muse “could pose a new potential threat to the position of search.”
Alphabet, facing competitive implications through its Gemini pipeline, was also noted in the context of the announcement.
