Meta Platforms shares surged more than 20 percent following the September 8, launch of Muse, a new consumer AI assistant capable of handling multi-step tasks like booking travel and sending emails, according to Reuters. The rapid adoption of the application has sparked a broader Wall Street tech rally and prompted analysts to reevaluate the company’s software monetization potential.
Early App Downloads Outpace ChatGPT Benchmark
The Muse application recorded 2.8 million downloads in its first 12 days of availability, according to data from Apptopia cited by Reuters. Available on iOS and Android for users in the United States and Canada, the tool achieved 1.8 million downloads over a comparable 12-day metric window, outpacing the 1.3 million downloads recorded by OpenAI’s ChatGPT during its initial launch phase, according to Reuters.
J.P. Morgan analysts noted that Muse possesses the potential to become the most widely used consumer artificial intelligence application since ChatGPT. Analysts attributed this early traction to strong product-market fit, Meta’s extensive distribution reach, and a free basic tier designed to lower the barrier to trial and repeat usage.
Wall Street Revenue Projections and Subscription Tiers
Muse operates on a freemium model, offering a basic free version alongside paid subscription tiers priced at $20 and $100 per month for heavier operational use, according to Reuters. Brokerage Jefferies estimated that if the application reaches 1 billion users by the end of 2027 and converts at least 3 percent of those users to a paid tier, it could generate $10.8 billion in annualized revenue. In response to these projections, Jefferies raised its price target on Meta stock to $875.
UBS Global Wealth Management analysts stated in a note reported by Reuters that Muse provides early evidence that consumer artificial intelligence agents can achieve broad adoption outside of enterprise applications. Data compiled by LSEG indicates that 57 of the 64 brokerages covering Meta’s stock maintain a “buy” or higher rating, with a median price target of $760.
Broader Market Impact on Chipmakers and Valuation
The enthusiasm surrounding the application’s launch catalyzed a broader Wall Street rally on Monday, lifting Meta shares by more than 11 percent and increasing the company’s market capitalization by over $200 billion to reach a seven-month high, according to Reuters. The surge also boosted semiconductor stocks, including Advanced Micro Devices (AMD) and Intel, with AMD crossing a $1 trillion valuation milestone for the first time.
“The market has interpreted Muse as a boon for the already significantly bottlenecked CPU market,” said Michael O’Rourke, chief market strategist at JonesTrading, as reported by Reuters. BofA Global Research analysts added that early user reviews highlight the application’s functionality, particularly its capability to execute complex workflows with limited user intervention.