Shares of Meta jumped almost 5% in after-hours trading Wednesday as the tech business reported significant growth and stated its AI investments are paying off. Meta’s core ad business had a good quarter, with the firm reporting a 26% rise in overall revenue to $64.6 billion, driven by AI recommendations, more advertisements being shown and higher ad rates. Investors are eyeing possible new companies around Muse, the company’s personal artificial intelligence agent that launched in September. Meta CEO Mark Zuckerberg claimed the company’s Muse agent might someday produce more income per user than apps like Instagram and Facebook.
The future Muse economic model would probably incorporate subscriptions, adverts, e-commerce tools and other features, Zuckerberg said. More than 10 million people in the US and Canada have signed up for accounts for Muse, Zuckerberg added. “The launch of Muse, Meta’s AI model, is intended to drive that next development of growth and early signs are encouraging,” said Ben Barringer, head of technology research at Quilter Cheviot. There are 10 million members and majority of the activity on Muse is shopping and travel. The average spend per purchase through the agent is about $200. Meta wants to scale this to a billion users globally and get to profitability quicker than the firm would ordinarily do, which shows their faith in Muse and its capabilities,” added Barringer.
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