Meta's Muse AI agent drew millions of downloads in its first two weeks. The ad-free product is intended to generate revenue through a small cut of transactions; Meta shares rose about 13% over the past week as investors assessed its consumer AI potential.
The rally follows earlier stock drawdowns amid concerns about ballooning AI capital spending, claims of social-media addiction and years of heavy Reality Labs losses. Wall Street analysts also point to last year's AI strategy reset, including the creation of Super Intelligence Labs and a shift to proprietary models; Meta launched its closed Muse Spark model this year.
Analysts are watching downloads and new connectors for signs of revenue growth and return on investment. The stock has 73 Buy, six Hold and no Sell ratings; dozens of analysts raised price targets over the past week, and the consensus target is $787.
