News about Muse

Meta's Muse AI agent has over 10 million users in the U.S. and Canada since its September 8 launch, CEO Mark Zuckerberg said on the third-quarter earnings call. The company is building compute capacity to serve more than 1 billion people over the next few years, with about 25% of users engaging daily and early adopters showing better retention over time. Muse is mostly used for shopping, with more than a quarter of users averaging purchases over $200. Meta aims to cut compute costs by more than 10x within the next year to make the product profitable, and plans a freemium model with commerce fees from businesses and paid subscriptions for advanced models. META stock has gained more than 7% year-to-date, and retail sentiment on Stocktwits improved from neutral to bullish over the past 24 hours.

Meta reported third-quarter revenue of $64.6 billion, up 26% year over year, with family daily active people averaging 3.64 billion. GAAP diluted EPS was $3.83 after a $9.89 billion charge tied to a multistate attorneys general agreement, while adjusted diluted EPS was $7.40. Capital expenditures reached $34.9 billion, pushing free cash flow to negative $2.1 billion, and full-year 2026 capex guidance is $135 billion to $145 billion. Muse reached 10 million users in the U.S. and Canada within six weeks of launch, with 25% using it daily. Meta also announced a nonvoting Class C stock and a 2-for-1 stock split expected to begin trading in late January 2027.

Meta's third-quarter revenue rose 26% year over year to $64.6 billion, above the $63.37 billion analyst consensus compiled by LSEG. Diluted EPS was $3.83, but excluding a $9.89 billion legal settlement charge over teen addiction litigation with state attorneys general, it would have been $7.40. Management said more than 10 million people in the U.S. and Canada had set up Muse personal agents in about six weeks, with roughly 25% using it on a given day. Meta plans to monetize Muse through fees on e-commerce transactions, paid tiers for power users, and business features. Compute costs remain high, but the company expects more than a tenfold improvement in cost efficiency over the next year.