Meta Platforms is seeing strong momentum with its new consumer AI assistant. Many on Wall Street think this could be the beginning of more positive news for the stock in the coming months.
Shares rose 1.1% in premarket trading Thursday, setting the stock up for a fifth straight day of gains. Meta shares are up about 10% since September 8, when the company launched Muse, its personal AI assistant.
On Thursday, Citi put Meta on its list of stocks with positive short-term catalysts ahead of next week’s Meta Connect event. The firm remains optimistic about the stock.
Muse is a key reason for this optimism. Meta’s chief AI officer said on social media that Muse is the biggest consumer AI launch since ChatGPT. He also pointed out that Muse now gets more daily U.S. downloads than Threads, WhatsApp, and Facebook. Citi said it is impressed with the Muse user experience and noted that downloads are still strong.
Citi expects Meta Connect to bring updates on the company’s overall AI product strategy and the launch of its next advanced AI model. The firm said Meta’s product plans are becoming clearer, with several possible positive developments ahead.
There have already been other positive developments besides Muse. This week, Meta officially launched a new subscription service called Meta One, which offers more AI features and professional tools.
Rosenblatt said Meta One could eventually bring in billions of dollars in yearly revenue. The firm noted that the launch builds on the strong momentum from Muse, which has stayed near the top of app store rankings since its debut in early September.
Meta’s overall plan to make money from AI seems to be working, and next week’s Meta Connect event could be the next big boost for the stock.
