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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3 key pointsJPMorgan’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....
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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
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
- cnbc.comMeta's Muse agent has the potential to dominate the AI space, says JPMorgan
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