Meta's Muse AI Is Soaring in Popularity. Could It Send the Stock to New Heights?
Key Points
Meta unveiled its Muse personal AI agent earlier this month.
It's already been a huge hit, with downloads totaling over 700,000 on the iOS App Store in the first five days.
Meta is offering paid subscriptions for Muse based on usage that could generate significant revenue growth.
Meta Platforms (NASDAQ:META) recently unveiled its new personal artificial intelligence (AI) agent, called Muse, and it's been incredibly popular. It was released on Sept. 8, and data from Sensor Tower shows that downloads have totaled approximately 730,000 in the first five days. Last week, it also became the top free app in Apple's iOS app store.
The early popularity of Muse has been boosting Meta's stock, which soared more than 11% on Monday. With plans to monetize the app, this could also be a big moneymaker for the business, helping justify its heavy investments in AI. Could Muse be the catalyst that Meta needs to send its stock to new heights?
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What's so special about Muse?
There are loads of AI chatbots on the market right now, but what sets Muse apart is its focus on being a personal AI agent that helps with day-to-day tasks. The company says, "It doesn't just answer questions, it actually does the work. It helps people stay on top of things, takes tasks and projects off their plate, and turns long-term goals into action plans."
It also claims that it's safe and secure, and that "each person stays in control of their Muse and decides how much access it gets." It can fill out forms, book travel, send an email, and shop on someone's behalf. Muse aims to be someone's real AI assistant, going beyond simply answering queries.
The company is offering a free version, but there will also be paid options for heavy users, which will cost either $20 or $100 per month, based on usage. Many AI companies have been going this route for their AI models, and so it's unsurprising for Meta to do the same. With the early download numbers highly encouraging, there may be a significant number of paying users, but of course, it's too early to tell at this stage.
Does this make Meta Platforms stock a buy?
Meta's Muse AI agent has given the stock a spark, and right now, it's up over 12% year to date. Meta's been struggling for much of the year, but positive momentum from Muse could certainly help the stock rally, and it's getting close to its 52-week high of $770.60. At 28 times its trailing earnings, it's not a terribly expensive stock, but it isn't a terribly cheap one either; the average S&P 500 stock trades at 23 times its profits.
I'd hold off to see just how popular Muse really turns out to be, and more importantly, how much money Meta generates from it. There's so much competition in AI these days. While the early hype and excitement are strong, investors may want to wait to see just how much that actually translates into dollars and earnings growth.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool has a disclosure policy.