Meta Platforms (NASDAQ: META) Rallies on AI Momentum and Muse App Optimism

• Meta Platforms (NASDAQ: META) surged about 11.3% as investors reacted positively to its new AI assistant, Muse.
• Muse reportedly reached the top of Apple’s U.S. App Store, supporting optimism that Meta can build new AI-driven revenue streams.
• Meta’s core advertising business remains strong, but rising AI spending could pressure near-term earnings.

Meta Platforms (NASDAQ: META) is a global technology company behind Facebook, Instagram, WhatsApp, Messenger, Threads, and Reality Labs. With a market capitalization of approximately $1.90 trillion, Meta remains one of the largest companies in digital advertising, social networking, and consumer AI.

Meta shares recently traded near $741.25 after jumping about 11.3% in a single session. The rally was driven by enthusiasm around Muse, Meta’s new AI personal assistant, which reportedly became the top free app on Apple (NASDAQ: AAPL)’s U.S. App Store. Investors viewed Muse as a potential new platform for subscriptions, developer tools, and non-advertising revenue.

Meta’s core business also remains strong. The company recently reported 27% year-over-year advertising revenue growth, showing that Facebook, Instagram, and its broader Family of Apps continue to generate strong demand from advertisers.

However, the outlook is not purely positive. Analysts expect revenue to grow, but quarterly EPS is projected to decline to about $6.39, down 11.9% year over year. This suggests that heavy AI infrastructure spending may weigh on earnings even as revenue continues to expand.