J.P. Morgan analyst upgrades Meta stock rating after Muse launch
In the United States, Meta's Muse AI agent ranked third in Apple's U.S. App Store, while J.P. Morgan analyst Doug Anmuth upgraded his rating on Meta Platforms stock from neutral to overweight, which corresponds to a buy recommendation. He linked the decision to the company's progress in creating consumer-focused artificial intelligence products, MarketWatch reports.
Anmuth also raised his price target for Meta shares to $820. This is approximately 26% above the $651 price recorded on Thursday morning. According to the analyst, Meta is only beginning to roll out AI products for consumers but has significant growth potential thanks to its personal agent and advanced models.
Assessment of the Muse launch
Meta says that its agent proactively helps users achieve their goals while operating privately and securely. Muse is powered by the Meta Muse family of models.
In Anmuth's view, the agent's strong start demonstrates Meta's ability to offer consumer AI products to its base of four billion users. He called this reach a significant competitive advantage for the company.
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The analyst also noted that the agent operates in a virtual machine alongside the user's data. In his assessment, security may be a key obstacle for other agents to earn users' trust when performing more complex tasks involving passwords and other sensitive personal information.
Models and computing costs
Anmuth drew attention to the launch of Meta Superintelligence Lab in June. In his assessment, the lab has effectively already introduced the advanced Muse Spark 1.1 and 1.3 models, which can compete with the most cutting-edge developments from OpenAI and Anthropic. He believes AI models will become the foundation of Meta's product and monetization strategy in the coming years.
Meta is not currently focused on monetizing Muse, but the analyst sees opportunities for fees and subscriptions. He forecasts that the company's AI computing expenses will reach $243 billion next year and $284 billion in 2028.
MarketWatch, citing Business Insider, also reports that Meta Superintelligence Lab head Alexander Wang allegedly told employees in July that the upcoming Watermelon model had caught up with OpenAI's GPT-5.5, which was launched in April.
