Meta Platforms (META) Stock Jumps 7% as Muse AI App Tops ChatGPT
Key Takeaways
- •Meta's Muse AI agent, launched in the U.S. on Sept. 8, became the most-downloaded free app in Apple's U.S. App Store and surpassed ChatGPT, with Sensor Tower estimating more than 730,000 U.S. downloads in its first 10 days.
- •Meta shares climbed about 7% to roughly $710 on Monday, and Wells Fargo raised its price target to $796 from $640 with an Overweight rating, though it did not raise revenue forecasts and lowered its 2026 operating income estimate for higher legal costs.
- •Amazon blocked Muse from making purchases on Amazon.com, saying the agent accessed the service without authorization, and restrictions by major platforms could limit Muse's most useful agent functions.
- •Muse includes paid subscription tiers that could create a revenue stream beyond advertising, but early downloads do not yet show whether users will stay active or generate returns to justify Meta's planned $130 billion to $145 billion in AI capital expenditures this year.
- •Investors are watching the Meta Connect developer conference beginning Wednesday, where Wells Fargo expects more Muse adoption data and possibly new features, after the stock rose about 25% in September.
Shares of Meta Platforms, Inc. (NASDAQ: META) jumped about 7% on Monday as investors responded to the rapid early adoption of the company's new Muse personal AI agent, which has overtaken ChatGPT as the No. 1 free app in Apple's U.S. App Store. The stock traded around $710 during the session, after closing Friday at $665.75. Investors also digested a raised price target from Wells Fargo.
Muse Hits No. 1 on the Store
Muse launched in the United States on Sept. 8 and has quickly become the most-downloaded free application in Apple's U.S. App Store. Sensor Tower, an app-intelligence firm, estimates the app reached more than 730,000 U.S. downloads in its first 10 days. App Store chart rankings are based on download volume, so the No. 1 placement reflects early adoption rather than revenue or long-term engagement. The milestone moved Muse ahead of ChatGPT, OpenAI's widely used chatbot, on the free-app chart.
Unlike a traditional chatbot, Muse is designed to complete tasks on behalf of users. The agent can book travel, send emails, fill out forms, shop online and manage other multi-step jobs.
The early traction is helping change the conversation around Meta's heavy AI spending. The company expects capital expenditures of roughly $130 billion to $145 billion this year as it builds out its AI infrastructure.
Wells Fargo Raises Meta Target to $796
Wells Fargo analyst Ken Gawrelski raised the firm's price target on Meta to $796 from $640 while maintaining an Overweight rating, citing the early momentum around Muse and improving confidence in Meta's AI product cycle.
The brokerage said U.S. Muse downloads reached a record 264,000 on Sept. 19. Daily active users had hit 448,000 a day earlier, according to Sensor Tower data cited by the firm.
Wells Fargo did not increase its revenue forecasts, however. It also lowered its 2026 operating income estimate to account for higher legal costs.
Muse could provide Meta with a new revenue stream beyond advertising. The service includes paid subscription tiers alongside its free offering, giving the company a direct way to monetize consumer AI usage. That is particularly significant because Meta's core Facebook, Instagram and WhatsApp businesses already reach billions of people, meaning the company could potentially distribute Muse across an existing user base without building a new audience from scratch.
Meta Connect Becomes the Next Catalyst
Investors are now looking toward Meta Connect, Meta's annual developer conference, which begins Wednesday. Wells Fargo expects Meta to provide more data on Muse adoption and could introduce additional Muse features during the event. The stock has already risen about 25% in September, raising expectations heading into the conference.
Amazon Blocks Muse From Shopping on Its Platform
There are already signs that third-party access could become a major challenge. Amazon has blocked Muse from making purchases on Amazon.com and said Meta's agent was accessing the service without authorization, highlighting a key challenge for Meta's agent-based AI strategy.
Amazon said third-party agents should operate transparently and respect a platform's decision over whether to participate. Meta has not publicly detailed how it plans to address Amazon's objection.
The dispute matters because Muse's usefulness depends partly on its ability to interact with websites, shopping services, email accounts and other platforms. If major companies restrict access, some of Muse's most useful agent functions could become harder to deliver.
Privacy and Retention Remain Open Questions
User trust is another risk, since a personal agent requires access to large amounts of private information. Meta says Muse runs inside a secure virtual machine, requires approval for sensitive actions and allows users to control which services it can access.
Strong early downloads do not yet show whether users will stay active, pay for subscriptions or generate enough revenue to justify Meta's rapidly rising AI investment.
For Monday, though, the catalyst was clear. Muse's early adoption and Wells Fargo's $796 target gave investors fresh evidence that Meta's AI spending could translate into a consumer product with broad appeal.
