Wall Street expects Meta's AI agent to shape into a new revenue engine

Since its launch, shares of Meta Platforms META.O have surged more than 20%, outpacing the "Magnificent 7" group of US tech companies during the period. Shares have added over $200 billion in market capitalization to touch their highest level in more than seven months as of last close.

"While it is still early, we believe that Muse has the potential to become the most widely used consumer AI application since ChatGPT," J.P.Morgan analysts said in a note, crediting the app's early traction to strong product-market fit, Meta's distribution reach and a free tier that lowers the barrier to trial and repeat use.

The Muse app, available on iOS and Android but only in the US and Canada regions, has clocked 2.8 million downloads in the first 12 days of launch, according to data from Apptopia.

If compared on similar metrics to the first 12 days of OpenAI's ChatGPT, Muse has 1.8 million downloads versus 1.3 million for ChatGPT.