Shares of Meta Platforms (META +6.55%) rallied Wednesday morning, gaining as much as 7.2%. As of 12:05 p.m. ET, the stock was still up 6.5%.
The catalyst that sent the social media and artificial intelligence (AI) specialist higher was the launch of an AI agent for the masses.
Image source: The Motley Fool.
A new way to make money
In a blog post published late on Tuesday, Meta introduced Muse, which the company describes as "the world's first personal AI agent built for everyone." The capabilities of Muse go beyond those of simple chatbots, allowing the agent to complete more complex tasks. Users can communicate with Muse using simple commands, instructing the agent to send emails, schedule appointments, make online purchases, or book dinner reservations.
Muse is connected to Facebook, Instagram, and WhatsApp, giving the agent insight into the user. It can also be linked to a host of third-party apps, including OpenTable, Ticketmaster, Spotify, and Shopify, among others.
Meta will offer both free and paid versions of the agent. The free version will limit usage, but those wanting more can upgrade to either the $20 or $100 tier, depending on usage. Muse will be available to users 18 years and older in the U.S. and can be downloaded from multiple app stores, via WhatsApp, or at the muse.ai website beginning on Tuesday. Later this year, the company will introduce the Muse Confidential Virtual Machine (VM), which will encrypt data accessible only to the user. The company ensures "Not even Meta can access it."
NASDAQ: META
Key Data Points
Investors are betting that this will mark a new profit center for Meta. More than 3.6 billion people accessed one of the company's platforms in June, giving Meta a massive target market. If only a small percentage of the company's overall user base subscribes to Muse, the company could generate a notable increase in its revenue.
Even after today's rally, Meta is selling for less than 25 times earnings, an attractive price for a company with so many ways to win.
