Meta (META), AI Assistant Muse Storm...Highest Monthly and Weekly Growth Rate in 2 Years

▲ Meta (META)/AI Generated Image

Meta Platforms (META) recorded its highest monthly stock price increase in over two years, driven by the explosive popularity of its new artificial intelligence (AI) assistant.

According to the US economic media MarketWatch on September 21 (local time), Meta's stock price surged 7% that day, approaching its highest level since January. The fact that Meta's newly introduced personal AI assistant, Muse, ranked #1 on Apple's (AAPL) US App Store drove the stock price increase. Analysts suggest that Meta CEO Mark Zuckerberg's emphasized 'personal superintelligence' strategy gained public traction, securing investor confidence.

Launched on September 8, Muse features agent capabilities that autonomously perform multi-step tasks such as exploring data across multiple accounts, filling out web forms, negotiating and purchasing online. Users can utilize Muse via a standalone app or WhatsApp. Driven by the Muse craze, Meta's stock price has risen 25% this month alone. Compared to its 52-week low in March, which was hit due to increased spending plans, it has jumped approximately 38%.

The establishment of a monetization model also drew positive evaluations from Wall Street. Meta introduced paid subscription plans of $20 and $100 per month, in addition to its basic free service. It also unveiled its Meta Model API for the first time, charging external developers and businesses for access to the basic model. This is seen as partly alleviating profitability concerns that arose from the execution of large-scale capital expenditures (CAPEX) amounting to $130 billion to $145 billion this year.

However, inter-platform competition and service blocking are considered challenges that need to be addressed. Amazon.com (AMZN) blocked Muse's shopping access on its website, citing security concerns and violations of terms of service. Jeff Wlodarczak, an analyst at Pivotal Research Group, predicted that "as agent AI replaces human search and decision-making, friction between platforms could increase," and foresees a competition among big tech companies to develop their own agents to defend against potential impacts on digital advertising revenue.

[Article Summary]

-Meta (META) surged 25% in September, driven by its new AI assistant Muse ranking #1 on the App Store.

-Concerns over large-scale capital expenditures were alleviated through $20 and $100 monthly paid plans and the first-ever monetization of its Model API.

-Amid inter-platform checks, such as Amazon's (AMZN) blocking of Muse shopping, the upcoming Meta Connect is considered another watershed moment.

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