The method the market sees it now, Meta (META) is about to upend the enterprise tech market with its new Muse AI agent.
“Lots can and will change in the future, but the key, simple point is that Meta has a hit on its hands with Muse,” said Evercore ISI Mark Mahaney in a new observe.
Shares of Meta erupted for an 11.3% gain to close at $741.25 on Monday, including a strong $192 billion to the company’s market cap and more than $13 billion to CEO Mark Zuckerberg’s internet price.
The stock rose another 0.2% in pre-market trading on Tuesday.
This embedded content material is not out there in your area.
Investor enthusiasm reached a fever pitch as Muse surged to the high spot on Apple’s App Store.
Muse reached 2.8 million downloads in its first 12 days, across both US and Canada app store per Sensor Tower information. What’s more, Muse has surpassed the early adoption of ChatGPT: 1.8 million downloads in its first 12 days in contrast to 1.3 million for ChatGPT.
Muse also set a new US every day obtain file of 264,000 on Sept. 19, its third straight day above 200,000.
“Muse’s goal was to make AI accessible to way more people,” Meta’s chief AI officer Alexandr Wang said in an X post.
The most important issue driving Meta’s stock is the potential of Muse to unlock unexpected earnings for Meta, explains Mahaney. If Muse could break into the profitable enterprise market during the AI infrastructure growth, it will be enormous.
Here’s Mahaney in his own phrases. He presents up the best clarification we have discovered on Wall Street on the new juggernaut that is Muse:
“The market has been hyper-focused on the Enterprise AI market. Excessively focused, we believe. We get it. Enterprises pay for productivity. Consumers don’t. Or at least that’s what the market assumes. Anthropic has eschewed the Consumer AI market, by directly criticizing via Super Bowl TV ads one of the biggest Consumer monetization methods – advertising. (There’s deep irony in that last sentence.) OpenAI has added to the Enterprise AI pile-on by touting its goal of being primarily Enterprise revenue driven by the end of 2026. And the market has largely awarded Meta with the lowest P/E multiple of the Hyperscaler Crew because its substantial AI investments weren’t clearly linked to an Enterprise market opportunity like Cloud Computing. But now there’s Muse and very early evidence that this can dramatically scale.
Muse matters to Meta shareholders because a) it amounts to a very tangible sign of successful product innovation and ROAI – evidence that Meta’s substantial AI investments ($200 billion plus in annualized capex and opex) have not been in vain; b) it suggests a potentially very dramatic new driver of usage and engagement for Meta; and c) it carries substantial new monetization opportunities for Meta in the form of advertising, subscriptions, and transaction revenue share against multi-trillion dollar total adressable markets.”