JPMorgan has reiterated its "Overweight" rating on Meta, keeping the price target steady at $820. The firm believes that the user growth and product iteration pace seen since the launch of Muse are strengthening market expectations around Meta's artificial intelligence initiatives.

Meta introduced Muse 2 in September, and the product quickly captured user attention. Muse has now climbed to the top of the free app download charts on the US App Store, with download volumes rising further compared to a week earlier. In the two weeks following the Muse 2 release, Meta's share price has gained roughly 21%, while the S&P 500 index has advanced only about 1% over the same period.

JPMorgan contends that Muse's current growth is not merely driven by short-term hype. Over the past few months, Meta has accelerated upgrades to the Muse Spark model, making progress in both AI agents and multimodal capabilities, and has rolled out several new features consecutively within two weeks of Muse's debut.

The bank points out that Muse's most significant advantage right now lies in the combination of its rapid product adoption speed with Meta's massive distribution ecosystem. With large-scale user platforms such as Facebook, Instagram, and WhatsApp, Meta possesses the ability to swiftly expand product reach if Muse can sustain high user engagement levels.

Other institutions have also offered positive assessments of Muse recently. Bank of America previously reaffirmed a "Buy" rating on Meta, noting that Muse has received favorable feedback in executing multi-step tasks and reducing the need for user intervention.

Meanwhile, Meta continues to expand its AI-related infrastructure investments. The company recently unveiled the Petal submarine cable project, which plans to connect France and the United States, with operations expected to begin in 2029. The cable will provide terabit-per-second transoceanic transmission capacity to support future larger-scale data and computing demands.

Overall, JPMorgan believes that Muse's rapid growth, ongoing model capability upgrades, and Meta's existing platform distribution advantages are forming a positive feedback loop. This is the primary reason the firm maintains its "Overweight" rating and the $820 price target.