Meta’s Muse Has Found Apple’s Weak Spot, Bank of America Warns
Key takeaways
- Meta’s Muse is already outpacing Apple’s Siri in key AI agent capabilities, posing a real risk to Apple’s ecosystem revenue even as iPhone sales stay robust.
- 2.5 million downloads in first two weeks
- Apple’s price target of $370 implying 37× 2027 EPS
- 2026 EPS forecast $8.85 (up 18.6%)
What happened
Meta Platforms launched its AI agent Muse on September 8, reaching 2.5 million downloads in two weeks and topping the U.S. iOS free‑app chart. Muse can open browsers, fill forms, negotiate, and keep running after the app is closed, giving it persistent background task capability. Major commerce partners such as Shopify, Expedia, and PayPal have integrated Muse, while Amazon has blocked it. Apple’s new Siri, released with iOS 27 on September 14, lacks Muse’s agentic features and background…
Why it matters
Muse threatens Apple’s long‑standing hardware dominance by siphoning discovery, referral, and transaction revenue that Apple currently captures through its ecosystem. If users rely on Muse for shopping, booking, and payments, Apple’s ability to monetize those interactions could erode, even if iPhone sales remain…
Short-term and longer-term
Short-term. Short‑term traders should watch for any Apple earnings guidance that reflects a slowdown in ecosystem revenue or a shift toward AI‑driven services.
Longer-term. Over the next few months, Apple’s ability to monetize its ecosystem will hinge on how quickly it can match or surpass Muse’s agentic capabilities.