Meta Platforms META shares rose more than 4% on Monday after the company launched two new artificial intelligence models, ending a four-session losing streak even as the tech-heavy Nasdaq Composite declined.
Meta shares were trading at $749 at the time of writing, up around 4.3% from Friday’s close. The stock’s advance came as investors assessed the company’s latest AI developments and their potential to expand its business beyond its core advertising operations.
The launch of Muse Wonder and Muse Wonder Full marks another step in Meta’s push to develop AI systems capable of handling more complex tasks rather than simply responding to user questions.
Meta launches two new AI models
Meta announced Muse Wonder and Muse Wonder Full on Monday, describing them as its most powerful models.
Unlike traditional chatbots that primarily answer questions, the new models are designed to plan, reason and execute multi-step tasks across digital environments. Potential applications include online shopping, travel bookings and other activities that require users to complete several steps.
“Muse Wonder and Muse Wonder Full apply specialized knowledge to problems people encounter at work and in daily life, from understanding a lease to making sense of financial or health information. Our evaluations include tasks in law, finance, and health that test this ability,” Meta said in its release.
According to CNBC, users of the Muse personal agent app will need to sign up for a monthly subscription costing either $20 or $100 to access the models.
The launch represents an effort by Meta to expand its business model through AI-powered services. Advertising continues to account for the bulk of the company’s revenue, while AI agents could provide an additional avenue for growth.
Meta also said the new models include its strongest safeguards against “cyber misuse,” addressing concerns about the potential misuse of increasingly capable AI systems.
Muse user base draws attention
Meta’s Muse platform has already attracted a substantial user base, according to internal data reviewed by The Information.
The publication reported that Muse had more than 3 million weekly users who submitted at least one prompt, alongside more than 1 million daily users who did so.
The launch of the two new models could help Meta strengthen engagement with the platform as it seeks to expand the role of AI in users’ daily activities.
For investors, the key question will be whether the new services can translate into sustained adoption and contribute meaningfully to Meta’s business. The subscription-based access model also introduces a potential revenue stream alongside the company’s advertising operations.
Analysts remain bullish ahead of earnings
Analysts maintained a broadly positive view of Meta’s prospects ahead of the company’s third-quarter earnings report, expected on October 28.
Cantor Fitzgerald maintained its Overweight rating on Meta shares while lowering its price target to $840 from $860. The revised target remains above the stock’s trading level.
TD Cowen also maintained a bullish stance, retaining its Buy rating and $865 price target for Meta.
Meanwhile, Wells Fargo analyst Ken Gawrelski kept his Overweight rating and raised his price target to $1,000 from $796.
The analyst views suggest continued confidence in Meta’s longer-term prospects despite recent pressure on its shares. The introduction of the new AI models adds another development for investors to consider as they assess the company’s growth opportunities.
Meta’s upcoming third-quarter earnings report will provide investors with an opportunity to assess its financial performance and the progress of its AI strategy.
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