Meta Stock Jumps 10% as Muse AI App Tops App Store

Meta shares climbed more than 10 percent during intraday trading on Tuesday, marking a significant reversal from the stock's underperformance over the past year. The rally was triggered by a combination of institutional confidence and strong consumer engagement with the company's new artificial intelligence products.

Wells Fargo analyst Ken Gawrelski lifted his price target for the company from $640 to $796 in a note to investors. He argued that Meta has finally established a credible narrative around its AI capabilities, a sharp contrast to the period last year when the firm faced delays in model releases and scrutiny over its massive infrastructure spending.

AI App Hits Top Spot

A key driver of the optimism is the rapid adoption of Meta's Muse AI agent application. The software recently secured the number one position on Apple's App Store, signaling that users are actively integrating the tool into their daily digital routines rather than treating it as a passive feature.

This success follows Meta's broader push into the AI market, which includes the release of the Muse Spark model and the Muse assistant. These launches serve as tangible proof points for investors who had previously questioned whether the billions of dollars spent on AI infrastructure would yield usable products.

Leadership Shift Reshapes Strategy

The turnaround in Meta's AI fortunes is largely attributed to strategic leadership changes. CEO Mark Zuckerberg hired Alexandr Wang, the co-founder and CEO of Scale AI, as the company's chief AI officer. This move was intended to rebuild the AI lab and streamline the development process after earlier setbacks.

The company now offers a suite of models under the Muse AI family, attempting to compete directly with other tech giants. The stock price action reflects a market shift from skepticism about AI spending to an assessment that the investment is beginning to generate visible consumer traction.

Stock Performance Context

Despite the recent jump, Meta stock has lagged behind several major competitors over the last twelve months. The share price fell roughly 5 percent over that period, while Amazon rose 38 percent and Google increased by 11 percent. Microsoft also outperformed Meta, rising 4 percent.

However, the momentum has shifted significantly in the last three months, with Meta stock soaring 30 percent. Only Microsoft managed to outpace this growth, rising 35 percent in the same window. This recent surge sets the stage for the upcoming Meta Connect conference, where Zuckerberg is expected to outline further plans for AI and wearables.