Key Takeaways
- Meta shares surged 6.55% Wednesday after launching its Muse AI assistant.
- Wall Street analysts expect Muse to drive a substantial new Meta product cycle.
- Zuckerberg highlighted Muse’s privacy safeguards and WhatsApp-inspired encryption.
Meta shares rose 6.55% Wednesday after the social media company debuted its Muse AI assistant, prompting bullish calls from Wall Street analysts who see a new product cycle ahead.
Muse fuels Meta stock rally
Meta Platforms shares gained more than 5% during Wednesday’s session, recovering most of their declines from earlier this year. The stock closed at $653.69, up $40.21, or 6.55%, according to the figures provided in the story.
The rally follows Meta’s introduction of Muse, a standalone AI assistant designed to work through the Muse app and directly in WhatsApp. The company says the assistant is built around the way people already communicate, joining a growing wave of AI chat assistants that let users interact with it much like they would message another person.
Mizuho Securities analysts said Muse could become an important driver of Meta’s business. In a client note, the analysts said the consumer AI agent “marks the beginning of a substantial product cycle for Meta that is not priced into shares.”
Mizuho maintains an Outperform rating on Meta and has set a $750 price target for the stock.
Analysts see bigger AI opportunity
KeyBanc Capital Markets is also bullish on Meta’s AI strategy. Its analysts maintain an Overweight rating and a $780 price target.
“We continue to believe the market underestimates Meta’s AI positioning and product cycle,” the KeyBanc analysts wrote.
The positive analyst views come as Meta continues to position artificial intelligence as a major part of its product strategy. The launch of Muse gives the company another consumer-facing AI product as it seeks to expand how people interact with its services.
Meta’s stock remains roughly 1% lower for the year despite Wednesday’s gain, showing how much ground the meta shares had lost earlier in 2026.
Zuckerberg highlights Muse security
Meta CEO Mark Zuckerberg emphasized privacy and security features in a video message about Muse. He said the company designed safeguards to prevent the assistant from accessing sensitive information stored in users’ accounts.
“We built a Secure Credential Store for your passwords and credit cards so Muse can’t read this information,” Zuckerberg said. He added that Muse asks users directly before taking sensitive actions, including making payments or sending messages.
Zuckerberg also said Meta is modeling Muse’s encryption on technology developed for WhatsApp, where, he said, “even Meta can’t see the messages that you send.”
The security features could be important as AI assistants move beyond answering questions and toward taking actions on behalf of users. Meta says Muse is designed to fit into existing messaging habits, potentially making the technology more accessible to people already using its platforms.
For investors, however, the immediate focus is on whether Muse can translate Meta’s AI investments into a broader product cycle. Wednesday’s stock move suggests Wall Street is increasingly willing to place a higher value on the company’s AI opportunities, echoing the bullish outlook on Meta’s AI strategy that fueled the rally.
