JPMorgan Says Meta's Muse Could Be Biggest Consumer AI App Since ChatGPT

Meta is drawing renewed investor confidence as its Muse AI product climbs the App Store and the company builds momentum around its Meta Connect event, according to KeyBanc Capital Markets Managing Director Justin Patterson. Patterson said Meta spent the year trading at its widest PE discount to Google in roughly a decade, with investors withholding credit for its CapEx and AI investments, but that gap has now closed as Muse drives consumer engagement, business connectors and a new device cycle. He noted the AI cycle is humbling, recalling that a year ago Google was seen as the AI loser before Gemini's Nano Banana shot to the top of the App Store and the stock gained over 100% in a year, while Meta has now moved past the social addiction trial and a successful Muse launch. Patterson said the next leg of the trade is watching the Muse ecosystem build out through more app downloads and connectors, which should eventually translate into top-line revisions and a path to $40 plus in earnings on 2028. He added that Meta reset its AI strategy away from Llama and formed the MSL group, Super intelligence labs, whose team has delivered frequent model updates and a consumer-facing AI product, taking the company from laggard to leader in a matter of months.

Meta is being viewed as an AI leader once again after its Muse product launch, according to KeyBanc Capital Markets Managing Director Justin Patterson, who discussed the stock's resurgence on Market Domination. Patterson said Meta traded at its widest PE discount to Google in roughly 10 years before Muse arrived, and the app's rise to the top of the App Store, growing business connectors and healthy consumer engagement have driven a multiple expansion that closed that gap versus Google. He noted the company reset its AI strategy away from Llama and formed the MSL group, Super intelligence labs, which has delivered more frequent model updates since its first release in April. Patterson said the next leg of the trade is watching the Muse ecosystem build out through more app downloads and connectors, which should eventually translate into top-line revisions and a path to $40 plus in earnings on 2028. He added that Meta did the hard thing last year and has gone from laggard to leader in the past couple of months.