Meta's Bull Case Strengthens on Rapid Muse AI Adoption, Mizuho Says

Mizuho analysts believe the investment case for Meta Platforms (META) is strengthening, driven by the rapid adoption of its Muse artificial intelligence agent. In a note to clients on Tuesday, the firm reiterated its Outperform rating and $750 price target, highlighting key developments ahead of the company's Connect conference.

Muse AI Gains Rapid Traction

The bullish outlook is increasingly supported by strong user engagement with Muse, according to Mizuho. The AI agent quickly became the number one free app in the app store following its launch.

Citing reported figures, the note pointed to significant download momentum:

• 730,000 downloads within its first five days.
• 2.5 million cumulative downloads by September 21.

This rapid uptake is a core component of the firm's positive thesis on the social media giant's AI strategy.

Connect Event and Wearables in Focus

Ad

Mizuho analyst Lloyd Walmsley expects the upcoming Meta Connect event on September 23-24 to be a major catalyst, shifting the narrative for Muse "from app adoption to platform creation." The headline announcement is anticipated to be the integration of Muse into Meta's smart glasses.

Walmsley described the combination of an AI agent with a wearable device as the "clearest consumer AI use case yet." The event is expected to showcase the convergence of Meta's hardware, AI models, and commerce ambitions, laying the groundwork for a new ecosystem.

Monetization and Competitive Landscape

Meta has already begun building the foundation for monetizing Muse, opening its new Connector Platform to third-party developers on September 18. This move sets the stage for transaction-based revenue, potentially through a take rate on businesses that use the platform to reach Muse users. Shopify and Stripe have already enabled checkout functionalities, a development Mizuho sees as promising.

In a sign of Muse's growing influence, Amazon has reportedly blocked the AI agent, which the analyst interprets as validation of its increasing scale. Mizuho noted that CEO Mark Zuckerberg has signaled a long-term goal for Meta to take a share of the value created by Muse, potentially disrupting markets like Google's search, online travel, and e-commerce advertising. The note also pointed out that Meta trades at 22 times its estimated 2027 earnings, a discount to Alphabet's peak valuation of 30 times during the height of "Gemini mania."