Meta is on fire. Its stock has risen 30% just in September. And if it keeps going like this through the end of the month, it will be its biggest monthly gain since 2013.
Against this backdrop, yesterday Mark Zuckerberg took the stage at Meta Connect, the company's annual conference. He unveiled new virtual reality glasses and a small device that fits on a keychain.
What are these products? And why does Wall Street seem so excited about them?
THE NEW META GLASSES
Until now, Meta's virtual reality offering was the Quest, essentially full-sized headsets. The new Meta VR Glasses are smaller, thinner and lighter. They weigh around 100 grams.
How did they achieve that? They split the device into two parts. On one side, you have the glasses. On the other, a small companion device containing a Qualcomm processor, a battery and storage. In very simple terms, it's a small computer that accompanies the glasses.
The displays are micro-OLED with 5K resolution, Dolby Vision and spatial audio. You don't need controllers. The glasses track your eyes and hands. And of course, they have Meta AI built in.
And what can you do with them? You can watch 3D movies, for example from Disney+. They are actually the first VR device to receive IMAX Enhanced certification. You can watch more than 100 live sporting events per year, from MLB to UFC. Or you can work with multiple virtual screens, while a simple flat surface becomes a keyboard.
And the price? $1,299.99, with a launch scheduled for spring 2027. For comparison, Meta's previous VR device, the Quest 3S from 2024, cost $299.
THE CHARM AND THE MUSE
Now let's move on to the second product. But first, what exactly is Muse?
Muse is Meta's personal AI agent and was launched in September. It performs tasks on your behalf. It sends emails, books trips, fills out forms and makes purchases. And it runs on Muse Spark, the AI model Meta introduced in April.
The Muse Charm is designed exclusively for this purpose. It is roughly the size of an AirPods case. It has a roughly 2-inch OLED touchscreen, 5G, front and rear cameras, speakers and microphones. You can attach it to your keychain, put it in your pocket or wear it on your wrist.
You might say, "But what do I need it for when I already have a phone?"
Zuckerberg answered that himself. If you're not wearing the glasses, this will be "by far the fastest way" to talk to Muse. Without unlocking your phone. Without opening an app. And it's worth noting that it does not replace your phone. It can play music and video, but it cannot make calls.
It is expected to arrive in December, in time for the holidays, and its price has not yet been announced.
THE STOCK AND JPMORGAN
Yesterday, Meta's stock rose more than 3%, reaching around $770. That same day, Doug Anmuth of JPMorgan maintained an Overweight rating, meaning "buy," and raised his price target from $820 to $920.
Why so much optimism? Because he believes Muse could become the most widely used AI application for ordinary users after ChatGPT. Yes. AFTER CHATGPT.
And the early numbers support that view. Number one on the US App Store. 2.8 million downloads in the US and Canada within 12 days. And more than 2,000 connected applications in two weeks, including Walmart, Best Buy, Sephora and Wayfair.
"And how will Meta make money from all this?" you may be wondering.
According to JPMorgan, at some point, tens of millions of businesses will have their own agent on Muse. Instead of searching or making a phone call, your agent will communicate with theirs. And Meta will take a commission, somewhat like the way it currently makes money from advertising.
And it's not just JPMorgan. Of the 63 analysts covering Meta, 57 have a buy recommendation.
AI AND DEVICES TOGETHER
But there is another factor. Cantor Fitzgerald also raised its price target, from $680 to $860. According to its analyst, Deepak Mathivanan, AI agents could become the "third growth curve" of artificial intelligence. And Meta is in a very strong position to benefit.
How large could the market become? From subscriptions and commissions alone, more than $250 billion, and if we also count the value of the time saved, more than $1 trillion. Yes, you read that correctly. For comparison, smartphones currently generate more than $600 billion.
Of course, not everything is rosy. According to Cantor, Muse initially costs Meta 25 cents per task. That's roughly $11 per month for each user. In other words, the company is subsidizing it. Within 18 to 24 months, however, costs could fall by more than 80%, allowing Muse to become profitable with a free basic version and paid options.
And this is where the bigger plan becomes apparent. Meta isn't simply building an AI model. It is also building the devices through which people will use it. And it wants to fundamentally change the way we use technology.
Of course, there is one major "but": privacy.
Meta and EssilorLuxottica are facing a class-action lawsuit in California over alleged privacy violations involving their smart glasses. That's why, according to Reuters, Meta was expected to also introduce glasses without cameras at Connect.