Meta Platforms shares dropped at the start of the week and are set for two straight losses, something that hasn’t happened since mid-August. This comes as AI-related stocks face more pressure across the market.
The drop followed news that OpenAI has stopped training its latest AI models and will only continue once it feels more safeguards are in place.
Since its launch on September 8, Meta’s AI assistant Muse has done well, quickly reaching the top of app store charts and giving the stock a big lift. Shares jumped 32% in September through Friday, but after dropping 3.3% on Friday, the stock fell another 3% in premarket trading on Monday. The early boost from Muse seems to be over, and now investors are wondering what will happen next.
BNP Paribas said investors should pay attention to new consumer AI assistants that could come from bigger companies like Google and OpenAI. The firm still has a positive view on Meta’s stock and its price target suggests there is room for the stock to rise from Friday’s close.
BNP Paribas pointed out that Muse should bring in some revenue through small transaction fees, but how Meta will make money from it in the long run is still unclear. The firm also said that advertising could become a strong source of revenue in the future, even though Meta has decided not to include ads in the assistant for now.
