JPMorgan Raises Meta Price Target to $920 on Muse’s Early Business Connections

The bank sees a path from app connections to business revenue, but that revenue is still a forecast, not a result.

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JPMorgan Raises Meta Price Target to $920 on Muse’s Early Business Connections
JPMorgan Raises Meta Price Target to $920 on Muse’s Early Business Connections

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JPMorgan has raised its price target for Meta by a hundred dollars, to nine hundred and twenty dollars a share, pointing to early business connections around Meta’s new AI agent, Muse. The bank kept its Overweight rating and said the target implied twenty-four percent upside from Wednesday’s close. The evidence so far is a network, not an audience. JPMorgan says Muse connected to more than two thousand applications in its first two weeks, including Walmart, Best Buy, Sephora and Wayfair. That shows where the agent can interact with businesses; it doesn’t tell us how many people use it or whether anyone completed a purchase. Analyst Doug Anmuth sees a bigger possibility: Muse could become the most widely used consumer AI application since ChatGPT. But that’s a projection, not a measure of current adoption. He also sketches a future revenue model. If businesses eventually run their own agents on Muse, Meta might take commissions or transaction shares, or charge based on business objectives. None of that is revenue today. Muse launched earlier this month and runs on Muse Spark, a model built to handle multiple kinds of input. The valuation case leans on adoption and a monetization path that has yet to be demonstrated. That’s a significant bet when Meta shares had already risen thirty percent in September. The next test is whether those connections turn into repeat use—and, eventually, transactions businesses will pay to facilitate.

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3 key points

JPMorgan’s call rests on Muse’s potential to turn business access into a revenue channel, not on demonstrated consumer adoption: the agent connected to more than 2,000 applications in its first two weeks, but no user or transaction figures are given. Analyst Doug Anmuth outlined possible future commissions, transaction shares or objective-based fees if businesses run agents on Muse; these are not current revenue....

  1. 01

    JPMorgan raised its target from $820 to $920, maintained its Overweight rating, and cited 24% upside from Wednesday’s close.

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    The 2,000-plus connections include Walmart, Best Buy, Sephora and Wayfair; connections do not establish active users or completed purchases.

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    Anmuth’s proposed commissions, transaction shares or objective-based fees depend on businesses eventually running agents on Muse.

JPMorgan has put a higher value on Meta’s prospects after two weeks of growth for Muse, its new AI agent. The bank raised its share-price target from $820 to $920, citing the agent’s business connections and what it believes could become a vast consumer audience.

The bet behind the new target

JPMorgan analyst Doug Anmuth said Muse could become the most widely used consumer AI application since ChatGPT. He described that outcome as a possibility, not an established measure of Muse’s reach. The bank kept its overweight rating on Meta.

The $920 target implied 24% upside from Wednesday’s closing share price, according to CNBC’s account of the bank’s note. Meta shares had already climbed 30% in September at the time of the call. JPMorgan is therefore projecting further gains after a sharp rise, rather than identifying a stock the market has overlooked.

JPMorgan’s Meta price target

Price target
$820$920
USD per share

JPMorgan increased its target by $100 per share.

Connections now, commissions later

The early figure supporting the bank’s case is more than 2,000 application connections in two weeks, according to JPMorgan. It also pointed to integrations with Walmart, Best Buy, Sephora and Wayfair. Those connections give Muse places to interact with businesses; the figure does not say how many people use the agent or how many transactions it completes.

Anmuth’s longer-term idea goes beyond connecting Muse to existing apps. He expects businesses eventually to run agents of their own on Muse, allowing a customer’s agent and a business’s agent to handle more interactions directly. In that scenario, he wrote, Meta could earn a commission or a share of transactions, or charge according to a business’s objectives. It is a proposed business model, not revenue JPMorgan says Meta is already collecting from Muse.

What the early signal can show

Meta rolled out Muse earlier this month. The agent runs on Muse Spark, a model designed to work with multiple kinds of input. That recent arrival makes the connection count an early sign of where Muse can operate, rather than evidence that it has become a lasting consumer habit.

That gap is central to the valuation call. JPMorgan has identified businesses connecting to Muse and mapped out how Meta might eventually charge for interactions with them. Whether people use those connections often enough to support that model remains unresolved.

Sources

  1. cnbc.comMeta's Muse agent has the potential to dominate the AI space, says JPMorgan

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