BofA Warns Meta's Muse AI Agent Threatens Apple Services Revenue
Bank of America flagged Meta's Muse AI agent as a risk to Apple's services revenue, citing commerce integrations. Apple shares fell over 2.5%.
Bank of America has warned investors that AI agents such as Meta's Muse could erode Apple's services revenue by capturing product discovery, referrals, and transactions. The note, reported by 9to5mac.com, sent Apple shares down more than 2.5%.
Analyst Mohan pointed to Muse's commerce integrations, including Shopify, Shop Pay, Expedia, and PayPal, as evidence the agent can insert itself into shopping and booking flows that currently pass through Apple's ecosystem.
Bank of America kept its Buy rating and $370 price target on Apple despite the warning.
Muse's rapid rise
Muse has held the No. 1 spot on the US App Store's free apps chart for nearly two weeks. As of last week, it had amassed more than 3.4 million downloads, according to Sensor Tower estimates cited by TechCrunch.
The agent needed just 10 days to overtake ChatGPT at the top of the US App Store, underscoring how quickly AI assistants are gaining consumer traction.
Quick answers
Why did Bank of America warn about Meta's Muse?
The bank said AI agents like Muse could threaten Apple's services revenue by capturing product discovery, referrals, and transactions.
How did Apple shares react?
Apple shares dropped more than 2.5% following the note.
What commerce integrations does Muse have?
Mohan cited Shopify, Shop Pay, Expedia, and PayPal.