Meta Platforms shares climbed more than 4% on Monday, snapping a four-day losing streak, after the company introduced two new artificial intelligence models. The advance came even as the Nasdaq Composite moved lower, highlighting investor interest in the social media giant's expanding AI portfolio.
The stock was trading near $749, up roughly 4.3% from Friday's close. The rally followed the unveiling of Muse Wonder and Muse Wonder Full, which Meta described as its most capable AI systems to date.
New AI models go beyond simple Q&A
Unlike conventional chatbots that mainly respond to prompts, the new models are built to plan, reason and carry out multi-step tasks across digital environments. Meta said the systems apply specialized knowledge to real-world problems, such as interpreting a lease or understanding financial and health information. The company noted that its evaluations include tasks in law, finance and health to test these abilities.
Access to the models through the Muse personal agent app requires a monthly subscription priced at either $20 or $100, according to CNBC. That subscription model introduces a potential revenue stream alongside Meta's core advertising business, which still generates the vast majority of its sales.
Muse platform shows early traction
Internal data reviewed by The Information indicates that Muse already has more than 3 million weekly users who submitted at least one prompt, along with over 1 million daily users doing the same. The launch of the two new models could help Meta deepen engagement on the platform as it works to make AI a bigger part of users' daily routines.
Meta also said the new models include its strongest safeguards yet against cyber misuse, addressing concerns about how increasingly powerful AI could be exploited.
Analysts stay bullish before earnings
Ahead of Meta's third-quarter earnings report, expected on October 28, analysts maintained a broadly positive outlook. Cantor Fitzgerald kept its Overweight rating while trimming its price target to $840 from $860. TD Cowen reiterated a Buy rating and an $865 target. Wells Fargo analyst Ken Gawrelski also stayed Overweight and raised his price target to $1,000 from $796.
Those targets sit well above the current trading level, suggesting continued confidence in Meta's longer-term growth prospects despite recent share price pressure. The upcoming earnings release will give investors a chance to evaluate the company's financial performance and the progress of its AI strategy.
For now, the market's reaction suggests that investors see the new models as a meaningful step in diversifying Meta's business beyond advertising, though the ultimate test will be whether the subscription services drive sustained adoption and contribute materially to revenue.
This article is for informational purposes only and does not constitute financial advice.
