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Meta shares rally more than 5% after debut of AI assistant Muse
Analysts at Mizuho and KeyBanc said Meta's Muse could kick off a larger AI product cycle that is not fully reflected in the stock price.
Meta shares surged more than 5% on Wednesday after the company debuted Muse, an AI assistant.
Yahoo Finance reports that Wall Street analysts were optimistic about the standalone chatbot, with Mizuho Securities arguing Muse signals a substantial product cycle for Meta that is not priced into shares. The firm kept an Outperform rating and set a $750 price target, while KeyBanc Capital Markets maintained an Overweight rating and a $780 target.
Muse is designed to work in the way people already communicate, so talking to it functions like messaging in the Muse app or directly in WhatsApp, Meta said. In a video message, CEO Mark Zuckerberg highlighted privacy and security features including a Secure Credential Store for passwords and credit cards, plus steps to check with users before sensitive actions like payments or sending messages.
Meta also said it is modeling encryption on what Meta built in WhatsApp, where even Meta cannot see messages sent. Yahoo Finance added that the stock has recovered most of its earlier-year declines, leaving it down roughly 1% year to date.