Meta shares advance 10% after Muse AI agent debut

  • Meta shares rose 10% after the Sept. 8 launch of its consumer-focused Muse AI agent.
  • Citi maintained a Buy rating and $800 price target while placing Meta on a 90-day catalyst watch.
  • Meta Connect on Sept. 23 is expected to provide updates on Muse, Meta’s AI strategy and Watermelon.

Meta Platforms shares rose 10% since the Sept. 8 debut of Muse, trading at $681.90 in Thursday premarket action and heading toward a fifth consecutive session of gains. Citi analyst Ronald Josey maintained a Buy rating and $800 price target while placing Meta on a 90-day upside catalyst watch through Dec. 15. Josey expects Meta Connect to provide updates on the company’s artificial intelligence strategy, its next-generation Muse model and the AI model codenamed Watermelon. Meta Chief AI Officer Alexandr Wang said Muse is recording more daily U.S. downloads than Threads, WhatsApp and Facebook combined, while Citi separately said its downloads had surpassed those of Instagram and Facebook. Meta has also introduced Meta One, a subscription service with higher AI usage capacity and professional features across Facebook, Instagram and WhatsApp, which has accumulated 15 million subscriptions and trial users. Rosenblatt analyst Barton Crockett said the service could eventually become a multibillion-dollar annual revenue stream and maintained a Buy rating with an $886 target. Meta’s second-quarter revenue rose 28% year over year to $60.8 billion, exceeding estimates, while earnings per share of $6.18 missed consensus. The company declared a quarterly dividend of $0.525 per share, payable Sept. 28 to shareholders of record Sept. 21.

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