Bank of America reaffirmed its Buy rating on Meta Platforms stock following the introduction of Muse, the company’s consumer AI assistant that launched on Sept. 8. The analyst firm set a price target of $810, representing approximately 9.3% upside from its reference price, though the potential return narrowed to roughly 8% using intraday pricing from Sept. 22. The upgrade reflected growing confidence that Meta’s significant investment in AI infrastructure could produce a differentiated consumer product rather than merely incurring costs without clear returns.
Muse distinguishes itself from conventional chatbots by executing multi-step tasks including email management, travel booking, and financial transactions with limited user intervention. According to data cited by Bank of America from Sensor Tower, Muse accumulated over 2.5 million downloads in the United States by Sept. 19 and reached approximately 557,000 daily active users. Its performance during its initial days surpassed comparable figures for ChatGPT at a similar stage. The application represents a significant expansion of Meta’s AI capabilities and positions the company to leverage its distribution advantage across 3.6 billion daily users across its platforms.
The launch of Muse presented Meta with a strategic choice regarding its limited computing capacity. Bank of America estimated that leasing AI computing power to external customers could generate up to $40 billion per gigawatt based on recent industry transactions. However, Meta’s management determined that investing computing resources into consumer agents and AI-enhanced advertising could ultimately create greater value. This decision carried substantial implications given Meta’s projected capital expenditures of $130 billion to $145 billion for 2026, compared with $72.22 billion in 2025.
Despite the positive reception, Bank of America noted that Muse remained a supporting catalyst rather than a complete investment thesis at the current valuation. The stock had risen 36% over the preceding month, significantly outpacing the broader market’s 1.2% gain. Meta shares traded near 21 times the 2027 earnings estimate, up from approximately 16 times several months prior, narrowing the margin for disappointment. Bank of America did not expect subscriptions, advertising, or commerce commissions related to Muse to become financially meaningful before 2028. The analyst noted that investors needed to observe downloads converting into sustained usage, paid subscriptions, and measurable revenue before pricing in additional multiple expansion, particularly given competitive restrictions such as Amazon’s decision to block Muse from accessing its shopping platform.
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