Meta launched its personal AI agent, Muse, with early analyst reactions pointing to a "more promising than expected" product cycle.
"We have been playing around with the new Muse app and came away positively surprised with the polish of the app, the breadth of functionality, the integration of a news feed, the ability to take action, and introduction with a free tier," Mizuho analysts wrote in a Sept. 9 note to clients.
For investors, the biggest hurdle has been proving a return on Meta's massive AI investment. Facebook's parent company has forecast between $130 billion and $145 billion in capital expenditures, primarily based on AI infrastructure such as data centers, servers and networking equipment.
"We believe the deployment of Muse, particularly if it quickly shows success in App Stores," the analysts continued, "can drive META shares higher."
Meta said Muse can handle tasks including sending emails, booking travel, opening a browser, filling out forms and negotiating on a user's behalf, as well as more advanced, longer-term goals. Mizuho said the agent's user experience is "significantly more consumer-focused" than those of other AI engines.
Mizuho said Muse could pressure Google's stock as investors weigh renewed AI-search competition, delayed Gemini capabilities, and tougher Search comparisons, while noting consensus estimates remain somewhat aggressive. The rise of agentic travel search and booking could also heighten "disintermediation fears" for online travel agencies, although the analysts remain skeptical that consumers will broadly hand AI agents control of bookings.
Mizuho's team, led by Lloyd Walmsley, maintains an "outperform" rating on Meta's stock with a $750 price target, about 15% upside from the current share price.