Meta Platforms Inc. (NASDAQ: META) saw its shares rise 12.90% over the last five trading sessions. Analyst Gene Munster attributes this movement to the potential of personalized artificial intelligence, specifically highlighting the company’s Muse product.
In a note published on September 24, Munster described personalized AI subscriptions as an “underappreciated AI growth lever” for consumer platforms. Following Mark Zuckerberg’s description of Muse as the “centerpiece” of Meta’s builds, Munster outlined a financial model for the potential impact of these subscriptions.
Munster estimates that if 5% of Meta’s 3.6 billion daily users paid $5 per month, the company would add $11 billion in annual revenue and increase operating income by 8%. In a more aggressive scenario, where 25% of users paid $10 per month, annual revenue could reach $108 billion, boosting operating income by 80%. Munster noted that these figures do not include potential transaction cuts Muse might take.
The analyst projects that within five years, power users spending up to $300 a month will account for 5% of subscriptions but 50% of total revenue, while the remaining 95% of users pay lower-tier prices.
Beyond consumer use, Munster identified growth opportunities in the enterprise sector. He noted that the average monthly AI spend per U.S. employee is currently $13, compared to an average monthly enterprise software spend of $780.
At the time of the report, META stock was trading at $225.07, with a year-to-date gain of 13.87% and a monthly gain of 31.86%.
