JPM Meta Platforms Inc The Models and Agents Are Here, With Muse Consumers and Businesses Coming Next

J P M O R G A N North America Equity Research 22 September 2026

Meta Platforms Inc The Models and Agents Are Here, With Muse Overweight Consumers and Businesses Coming Next; Reiterate META, META US Overweight Price (21 Sep 26):$741.24 Price Target (Dec-27):$820.00

We remain bullish on Meta following our 9/10/26 upgrade, and with Meta shares Internet - Large Cap / Mid & Small up 21% since the launch of Muse 2 weeks ago, vs. the SPX +1%. Muse has Cap continued to climb in the App Store to currently the #1 most downloaded free app Doug Anmuth AC in the US, and at increasing download volume compared to a week ago. The ( combination of virality and Meta’s strong distribution platform make the buzz

around Muse quite palpable. Following the accelerated model progression of Daniel Pfeiffer Muse Spark with big gains in agentic and multimodel capabilities in recent ( months, Meta is also shipping quickly around Muse with a series of innovations within just two weeks from launch. Meta launched a beta for Muse Margaret Hoffman ( outbound calls to US businesses, opened access for developers to build Muse connectors, launched Muse for Mac, & added Shop Pay for agentic checkout, J.P. Morgan Securities LLC among other improvements. We believe Muse’s early traction reflects three key drivers: 1) strong product-market fit, including leading agentic performance (Figure 2), ease of use, & an emphasis on privacy/safety; 2) a generous free tier that reduces friction for trial and repeat usage; & 3) Meta’s scaled distribution advantage. While it is still early, we believe that Muse has the potential to become the most widely used consumer AI application since ChatGPT. We believe that Meta is currently focused on learning how people are using Muse and improving the product, while also increasing consumer adoption and engagement. But opening up access for developers to build Muse connectors last week was quite significant. We view this as the first of likely many steps to bring businesses into Muse. As tens of millions, and then potentially hundreds of millions of businesses, ultimately have their own agents on Muse, we expect Muse transactions to be handled less by browsing or calling, and more through agent-to-agent interactions. Then we believe Meta will be able to monetize on a take-rate or commission model—or based on whatever the business’s goals are— similar to how it monetizes in advertising today. Importantly, while Muse and other agents may face pushback from certain online platforms & marketplaces early on, e.g. Amazon has blocked Muse access, we would still expect broader ecosystem participation over time as agents prove to be incremental sources of traffic and transactions. All eyes are on Meta Connect this week—Weds, Sept 23 & Thurs, Sept 24—with Wednesday’s keynote at 7PM ET. While wearables have been the key focus of Connect in recent years, we expect Meta to highlight recent AI progress & innovation across models, agents (Muse), & developer tools, as well as Meta Glasses & other hardware. We note that MSL lead Alexandr Wang will also speak at Connect. On a very tactical, short-term basis, we believe that some investors became more cautious heading into this week on the view that Muse had already launched, Watermelon would likely come after Meta Connect, & OpenAI would release its competing agent product this week, all of which may have contributed to Monday’s outsized move in Meta shares. More broadly, we expect Muse adoption and engagement to continue to ramp, with Meta beginning to prove out AI returns—and leadership—beyond its core advertising platform, with a TAM potentially in the tens of trillions of dollars. Meta shares currently trade at 21x our 2028E GAAP EPS of $35.44, which we believe could prove conservative. We

See page 7 for analyst certification and important disclosures.

Doug Anmuth AC North America Equity Research ( September 2026 JPMORGAN

reiterate our Overweight rating & $820 PT.

• Muse Adoption Is Early and Encouraging. Muse has shown strong early signs of virality and consumer adoption, with Muse reaching the #1 most downloaded free app in the U.S. and Canada Apple App Stores (see Figure 3) & daily downloads in the…