Key Highlights
- META shares climbed 11.4% Monday as excitement builds around its new Muse AI personal assistant
- The Muse app captured the top position on Apple’s App Store with 264,000 downloads in the U.S. on September 19
- Wells Fargo upgraded its price target to $796 from $640 while reaffirming an Overweight rating
- The platform offers three pricing tiers—free, $20/month, and $100/month—establishing clear revenue opportunities
- Year-to-date, META has gained 12.1% and currently holds a P/E ratio of 25, under the S&P 500 benchmark
Meta Platforms (META) experienced a massive 11.4% rally on Monday, pushing shares to $741.25, as market sentiment around the company’s newly launched Muse AI personal assistant reached fever pitch.
The significant move followed Muse securing the top download position on Apple’s App Store. Wells Fargo’s Ken Gawrelski contributed to the momentum by boosting his price forecast from $640 to $796 while maintaining his bullish Overweight stance.
Gawrelski highlighted that recent model rollouts combined with strong early adoption of Muse position Meta favorably ahead of its Meta Connect conference scheduled for September 23-24.
SensorTower data referenced by Wells Fargo shows that Muse achieved 264,000 U.S. downloads on September 19, while daily active users touched 448,000 on September 18.
Muse made its U.S. debut on September 8 as an AI-powered personal assistant capable of managing emails, arranging travel, completing forms, and continuing tasks even after users close the application. The platform is accessible via iOS, Android devices, muse.ai, and WhatsApp.
Within just five days of availability, the application accumulated 600,000 downloads. This rapid adoption rate has drawn parallels to the explosive launch ChatGPT experienced.
The technology behind Muse is Meta’s Muse Spark model, described by the company as its most advanced system for executing task-oriented functions. This same underlying technology drives Meta AI functionality throughout Facebook, Instagram, WhatsApp, Messenger, and Meta’s smart glasses product line.
Revenue Generation Strategy
Meta has structured Muse with a tiered approach featuring a no-cost option plus premium subscriptions at $20 and $100 per month. This framework creates an immediate monetization avenue for the company’s substantial AI investments.
CEO Mark Zuckerberg positioned the free tier strategically, stating the agent “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 returns from Meta’s considerable AI expenditures.
Since Muse’s introduction two weeks ago, Meta’s stock has appreciated 21%. Monday’s powerful advance created a ripple effect across CPU manufacturers, with Arm, Intel, and AMD all posting gains during the session.
Attractive Valuation Metrics
Even after Monday’s substantial rally, META maintains a price-to-earnings multiple around 25, which remains under the S&P 500’s average valuation.
Analysts project Meta will achieve 26.5% revenue growth this year, reaching $254.1 billion, and notably these forecasts don’t factor in any potential Muse contributions.
Shares are currently changing hands near $741, approaching but still beneath 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 announcements.
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