Meta Platforms' Muse has achieved over 2.5 million downloads globally within its first two weeks, outperforming competitors like Anthropic's Claude and Google's Gemini, as reported by Jefferies and Sensor Tower. UBS noted that Muse is even surpassing ChatGPT in iOS mobile downloads.
Analysts, including Doug Anmuth from JPMorgan, suggest that Muse could become the leading consumer AI application, prompting Jefferies to raise its price target for Meta to $875, indicating an 18% upside from its recent close.
This surge in consumer interest in AI agents is shifting Wall Street's focus from enterprise applications to consumer use, with UBS stating that consumer agents could drive the next phase of the AI trade. The success of Muse is also highlighting the demand for computing power, benefiting chipmakers like Intel and AMD.
However, Muse's rapid rise has led to friction in online shopping, as Amazon has blocked Muse from acting as a personal shopper, which could impact its functionality. Analysts warn that Muse might increase app cancellations, particularly affecting streaming services and news subscriptions.
Additionally, the success of Muse raises questions about Meta's cloud business strategy, as it may not need to rent out excess computing capacity given Muse's performance