Key Takeaways
- Meta shares surged approximately 7% on Monday driven by strong enthusiasm for its newly released Muse AI personal assistant.
- The Muse application climbed to the top position among free downloads on Apple’s U.S. App Store, surpassing ChatGPT.
- Wells Fargo upgraded Meta’s price target from $640 to $796 while keeping its Overweight rating intact.
- The Meta Connect conference kicks off Wednesday, with market participants anticipating additional Muse metrics and potential feature announcements.
- Amazon restricted Muse’s access to its shopping platform, underscoring significant obstacles for Meta’s agent-driven AI approach.
Meta Platforms (META) shares experienced a significant rally of approximately 7% on Monday as market participants reacted positively to the swift early adoption of its Muse AI personal assistant. During trading hours, the stock hovered around $710 after ending Friday’s session at $665.75.
Muse made its U.S. debut on September 8 and has rapidly climbed to become the leading free application download on Apple’s U.S. App Store. According to Sensor Tower estimates, the application accumulated over 730,000 U.S. downloads during its initial 10-day period.
Different from conventional chatbot technology, Muse operates as a task-completion agent working on users’ behalf. The application can handle travel reservations, email communications, form submissions, online purchasing and various multi-step operations.
This promising early performance is reshaping discussions surrounding Meta’s substantial AI investment strategy. The company anticipates capital expenditures ranging between $130 billion and $145 billion this year for AI infrastructure development.
Wells Fargo Elevates Meta Price Target to $796
Wells Fargo analyst Ken Gawrelski increased the firm’s Meta price objective to $796 from the previous $640 target while preserving an Overweight rating. The upgrade reflects Muse’s early success and growing optimism regarding Meta’s AI product development.
According to Wells Fargo, Muse recorded a peak of 264,000 U.S. downloads on September 19. Daily active user counts had climbed to 448,000 one day prior, based on Sensor Tower information referenced by the financial institution.
The investment firm did not, however, adjust its revenue projections upward. Additionally, it lowered its 2026 operating income forecast to reflect anticipated increased legal expenses.
Muse represents a potential new revenue channel for Meta beyond its traditional advertising business. The platform offers premium subscription options alongside free access, creating direct monetization opportunities for consumer AI engagement.
This diversification holds particular significance given that Meta’s established properties—Facebook, Instagram and WhatsApp—already serve billions of users globally. The company could potentially roll out Muse to this massive existing customer base without needing to cultivate new audiences.
Meta Connect Emerges as Key Upcoming Catalyst
Market watchers are now focused on Meta Connect, scheduled to begin Wednesday. Wells Fargo anticipates Meta will share additional Muse adoption statistics and may unveil new capabilities during the conference.
Early indications suggest third-party platform access may present complications. Amazon has prohibited Muse from executing purchases on Amazon.com, stating that Meta’s agent accessed its service without proper authorization.
Amazon emphasized that third-party agents must operate with transparency and honor each platform’s participation decisions. Meta has not yet publicly outlined its strategy for resolving Amazon’s concerns.
This development carries weight because Muse’s effectiveness relies significantly on its capability to interface with websites, e-commerce platforms, email systems and other digital services. Should major companies implement access restrictions, some of Muse’s most valuable agent capabilities could face delivery challenges.
User confidence presents another potential risk, as a personal AI agent requires access to substantial amounts of sensitive personal data. Meta states that Muse operates within a protected virtual machine environment, mandates approval for sensitive operations and enables users to manage which services it can interact with.
The stock has already appreciated roughly 25% throughout September, elevating expectations heading into Connect. Strong initial download figures don’t yet confirm whether users will maintain active engagement, purchase subscriptions or produce sufficient revenue to validate Meta’s escalating AI infrastructure investments.
For Monday’s session, however, the driving force is evident. Muse’s impressive early traction combined with Wells Fargo’s $796 price target have provided investors with renewed confidence that Meta’s AI expenditures may yield a consumer product with widespread market appeal.
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