Key facts
- Meta's AI agent Muse has become the top free app on Apple and Google app stores in the US and Canada.
- Muse recorded 2.8 million downloads within two weeks of its launch.
- Investors fear Muse could become a powerful comparison-shopping tool, weakening customer loyalty.
- Meta's stock has risen nearly 13% this week.
- Shopify shares jumped 11.4% after announcing integration with Muse.
- The Philadelphia Semiconductor Index has gained 7% since Muse's launch.
Meta's new AI agent, Muse, has created market ripples this week, with investors debating its potential to disrupt various consumer-facing businesses while boosting tech-related stocks. Launched under Alexandr Wang, who leads Meta's AI efforts, Muse allows users to delegate tasks such as shopping and travel booking to an AI agent.
Within two weeks of its release, Muse became the top free app on Apple's App Store and Google Play Store in the US and Canada, recording 2.8 million downloads and an average daily download growth of 55% in its first 10 days, according to market intelligence firm Sensor Tower.
Concerns are mounting that Muse's scale could turn it into a powerful comparison-shopping tool, potentially weakening customer loyalty for incumbent providers by making it easier for consumers to find lower-cost alternatives. This fear has weighed on financial stocks, with JPMorgan and Wells Fargo losing over 3% each this week, and brokerage Charles Schwab down nearly 5%. Insurers Marsh and Arthur J. Gallagher also saw declines of 2.4% and 4.6%, respectively.
Booking companies like TripAdvisor and Booking Holdings, which rely on subscription models, have fallen over 6% this week. Other decliners include Planet Fitness (down 17%), The New York Times (down 10%), ride-hailing companies Uber and Lyft, and online food marketplace DoorDash.
However, some analysts, like Art Hogan of B. Riley Wealth, view these disruption concerns as exaggerated, suggesting that individuals entrusting their finances to an AI agent for price comparison were unlikely to be high-value clients to begin with.
Conversely, Meta's stock has soared nearly 13% this week, fueled by expectations that Muse could generate significant additional annual revenue, with Truist Securities estimating it could reach at least $28.5 billion by fiscal 2030. US-listed shares of Shopify have jumped 11.4% after announcing its integration with Muse for checkout processing, and payments platform PayPal has seen marginal gains following a similar announcement. Privately held companies Stripe and Ticketmaster have also struck deals with Meta.
The increased demand for AI compute power driven by apps like Muse is also benefiting AI infrastructure and chip stocks. The Philadelphia Semiconductor Index has gained 7% since Muse's launch, with Nvidia and Advanced Micro Devices among the top performers.