Key Insights:
- Meta stock climbed above $700 after Muse AI helped drive an 11.4% one-day gain.
- Muse passed 2.5 million downloads after its September 8 launch, according to Sensor Tower.
- Jefferies raised its Meta price target to $875 as Muse gained early user traction.
Meta stock remained near its 2026 highs on Sept. 22 after investor attention shifted toward rapid early adoption of the company’s Muse AI agent.
META closed Monday at $741.25, up 11.43%, before reaching an intraday high of $757.27 on Tuesday. Shares finished Tuesday at $736.60, leaving the stock close to the upper end of its 2026 trading range.
The rally followed strong early download estimates for Muse and a series of Wall Street price-target increases tied to Meta’s consumer AI strategy.
Meta Stock Rallies as Muse AI Gains Users
Meta stock gained more than 30% in September after the company launched Muse. The app crossed 2.5 million downloads within two weeks, while newer data put downloads at about 2.8 million in 12 days. Muse also passed 300,000 daily downloads, adding to investor interest in Meta’s consumer AI strategy.
The move pushed shares above the $700 level that traders had watched during Meta’s recovery. Monday’s rally marked the company’s strongest one-day percentage gain since April 2025. Meta stock also reached an intraday high of $753 before closing slightly below that level.
Muse can handle tasks such as sending emails, booking travel, shopping and completing multistep requests. Meta offers a free version alongside $20 and $100 monthly subscription tiers. The structure gives the company a direct way to test paid demand for its AI products.
Wall Street Raises Meta Targets After Muse Launch
Jefferies analyst Brent Thill raised his Meta price target to $875 from $710 on Tuesday. He pointed to Muse adoption and said the product changed the market narrative around Meta’s ability to build a consumer AI agent. Wells Fargo also raised its target to $796 from $640 after the app gained traction.
The target changes follow a period when investors questioned Meta’s large AI spending plans. The company expects capital expenditure between $130 billion and $145 billion this year, with much of that money going toward data centers and computing infrastructure. That shift has changed how investors frame spending.
Muse as a possible new revenue engine. Jefferies estimates the service could generate $10.8 billion in annual revenue by 2027, assuming 1 billion users and a 3% paid conversion rate. Those forecasts depend on user growth, retention, and Meta’s ability to convert free users into paying customers.
Muse Opens New Revenue Routes
Meta built its business around digital advertising, but Muse offers the company another revenue stream. Paid subscriptions can help cover computing costs, while commerce activity could create transaction-based income if users complete purchases through the assistant.
Meta has also started connecting Muse with outside commerce platforms. Shopify announced an integration that allows Muse users to shop across merchant catalogs and use Shop Pay during checkout. The agreement expands the number of stores that Muse can access without requiring Meta to build its own merchant network.
Meta Expands Muse Commerce With PayPal
Additionally, Meta also added PayPal to the commerce network around Muse. PayPal said the partnership will allow users to shop and complete checkout through Muse across participating merchants. The agreement gives Meta another payment route as it tests agent-led shopping.
PayPal shares rose during Tuesday’s session after the announcement, while Meta traded near its 2026 high. The partnership adds payment infrastructure to Muse as Meta develops the assistant beyond information requests and basic digital tasks.
Meta Connect now gives the company another chance to explain how Muse fits into its broader AI strategy. Investors will also watch upcoming earnings for evidence that Meta’s AI spending supports revenue growth without putting more pressure on profits.
This article is for informational purposes only and does not constitute financial or investment advice. Analyst price targets and adoption estimates do not guarantee future stock performance.