Meta Platforms shares have climbed recently thanks to its new AI assistant, Muse. However, StoneX warns that Meta’s bigger push into AI could end up costing the company more than it helps.
In a research note on Wednesday, StoneX said it expects Muse to increase, not reduce, investor worries about Meta’s large AI spending. The firm is keeping a neutral view on the stock.
StoneX also noted that Muse’s much higher infrastructure needs will likely make the debate over Meta’s return on investment even more heated.
Meta’s shares slipped a bit before the market opened, but the stock is still up a lot this month, mostly because Muse quickly became a top app. Meta plans to nearly double its capital spending to around $140 billion this year as it competes with other big tech companies in AI. Some investors are still unsure if this spending will pay off.
Muse has been an early win for Meta, but competition is heating up. On Tuesday, OpenAI said it will launch its own AI agent, which could compete with Muse. OpenAI’s new product is paid for now, but StoneX says it could still be a real threat. Meta answered by making Muse available to small businesses on the same day.
StoneX expects OpenAI will eventually offer a free, limited version of its AI agent to attract more users and encourage them to upgrade to paid subscriptions later.
