Strong early AI engagement and fresh model launches bolster Meta’s position.
- Muse retained 73.3% of new users the day after installation, outpacing ChatGPT’s 41.3%, according to Sensor Tower data cited by Menlo Ventures’ Deedy Das.
- Dan Ives sees Meta’s frontier AI models and 3.6 billion daily users as a powerful combination.
- Cathie Wood’s ARK Invest sold about $3.4 million worth of Meta shares on Monday after aggressively adding to its position in September.
Meta Platforms (META) shares slipped 0.5% in overnight trading late Monday after rising 3.4% during the regular session, marking their best daily performance in about two weeks.
The pullback came amid a broader market selloff over fresh fears about AI durability, with a particular slide in chip and AI infrastructure stocks.
Earlier in the day, CNBC’s “Mad Money” host Jim Cramer expressed renewed confidence in the Facebook and Instagram parent, pointing to promising adoption metrics for its Muse artificial intelligence assistant.
“Meta continues– I think it is a monster long but i know othrs are coming,” Cramer wrote on X, resharing user-retention data highlighting Muse’s early traction against OpenAI’s ChatGPT.
Muse Retention Data Impresses Investors
Cramer reposted Menlo Ventures partner Deedy Das’ post about Sensor Tower data covering September across 81 countries, comparing retention rates for AI applications.
Muse retained 73.3% of new users the day after installation, substantially above ChatGPT’s 41.3%, according to the data Das cited.
“Meta Muse’s retention is out, and it’s almost as good as ChatGPT!” Das wrote. “It’s higher than ChatGPT at D7 (>30%) and just lower at D14 (22%).”
He added that Muse had yet to match established platforms such as WhatsApp, YouTube, Instagram, TikTok and Snapchat on 14-day retention, but called it “one of the highest retaining AI products!”
Noted tech analyst Dan Ives wrote: “We continue to view Meta as a core name to own as the AI Revolution moves from models to agents, because a frontier model paired with 3.6 billion daily users is a combination few competitors can match. Arms race underway in AI and Meta in left lane chasing Anthropic/OpenAI.”
Meta Rides Muse Momentum
Meta launched Muse on Sept. 8 as an AI assistant capable of handling complex, multistep tasks, including sending emails, booking travel and completing transactions.
Muse’s launch and early adoption have provided investors with a new measure of Meta’s progress in consumer AI; META stock gained 27% in September. On Monday, Meta introduced its Muse Wonder, Meta’s new family of AI models, extending its push to compete with leading AI developers.
“It’s been just over a year since we started Meta Superintelligence Labs. Muse Spark was our first family of models, and now Muse Wonder is a much larger and more advanced class of models that brings us to the frontier,” CEO Mark Zuckerberg wrote on X on Monday.
ARK Invest Trims Meta Stake
Meanwhile, Cathie Wood-led ARK Invest sold 4,520 Meta shares through its ARK Innovation ETF (ARKK) on Monday. The transaction was valued at approximately $3.36 million, based on Meta’s closing price of $742.96.
ARK had aggressively added to its Meta position in September.
Retail View On META
On Stocktwits, the retail sentiment for Meta has dipped over the past 7 days and was ‘bearish’ as of late Monday. “META the whole market is red , that tells me huge pullback tomorrow,” a trader wrote.
META stock is up 12.8% year to date as of its last close.
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