On Tuesday, CNBC's Jim Cramer expressed skepticism regarding Wall Street's response to Meta's Muse AI, which is perceived to threaten consumer stocks by potentially disrupting consumer inertia. This concept suggests that AI agents like Muse could lead consumers to cancel subscriptions or seek better deals, impacting companies that rely on consumer passivity.
Since Muse's launch on September 8, stocks such as Planet Fitness, Airbnb, and Booking Holdings have seen significant declines, with losses of 20%, 13%, and 16%, respectively. Cramer compared the current situation to the earlier 'SaaSpocalypse,' where fears of AI disrupting enterprise software led to widespread sell-offs.
He cautioned against broadly categorizing entire sectors as AI losers, advocating for a more nuanced analysis of individual companies' vulnerabilities. For instance, he noted that upscale gyms like Life Time may be less affected due to their engaged membership base, while lower-cost options like Planet Fitness have suffered more.
Cramer also questioned the sell-off in travel stocks, suggesting that platforms like Airbnb still provide unique value despite potential competition from Muse. He believes that while Muse will impact certain businesses, it is unlikely to destroy entire industries, emphasizing the importance of assessing each company's specific situation