Meta Platforms is back in focus this week after launching Muse, its new personal AI agent on September 8. The announcement itself was not entirely unexpected, as the personal AI agent had been tested internally under the name Project Hatch and reports suggested a launch was approaching. What caught the market’s attention was the breadth of what Muse could do—and, more importantly, the potential for Meta to finally turn its massive AI investment into subscription, shopping and transaction revenue.
Unlike a traditional chatbot that simply answers questions, Muse is designed to take action. It can help organize schedules, draft and send emails, shop, complete forms and make reservations.
Muse is initially available to U.S. adults through a standalone app and WhatsApp. Over time, the bigger opportunity will be integrating the technology more deeply into Facebook, Instagram, WhatsApp and Messenger.
That is where Meta may have an advantage over its AI competitors. The company already has billions of people using its applications every day. Meta does not necessarily have to convince users to visit a new platform. It can bring Muse directly to the platforms where those users are already spending their time.
There is also a clearer path toward making money from AI. Meta is offering a free version of Muse, along with premium subscription plans reportedly priced at $20 and $100 per month. Muse is also being connected to outside services such as Shopify, where users will eventually be able to shop and complete purchases using Shop Pay.
For investors, that is important. Meta is expected to spend between $130 billion and $145 billion on capital expenditures in 2026, with much of that money going toward AI infrastructure. Until now, the market has questioned when—or if—that enormous investment would produce a meaningful return. Muse gives investors something more tangible to measure. If users adopt it, Meta could generate revenue from subscriptions, shopping and transactions in addition to its core advertising business.
There are risks. Muse may be given access to sensitive information from email, calendars, payment services and other applications. Meta says users must approve those connections and that the agent operates inside a secure virtual environment. Nevertheless, trust, privacy and security will be important if Muse is going to gain widespread acceptance.
Wall Street likes the potential. META shares rose 6.55% following the Muse launch. JPMorgan analyst Doug Anmuth also upgraded the stock to Overweight from Neutral and raised his price target to $820 from $640 (the current price is at $651). The bullish argument is that Meta is starting to move beyond simply spending money on AI and toward launching products that can potentially generate new revenue.
The fundamental story has therefore become more positive, and the price has also reacted positively. Has the market already priced in the Muse excitement, or is the stock preparing for another leg higher?
The fundamental story paints a picture. Some traders love the story. Some love the earnings and the revenue projections. Other’s – like myself – like those things but take a more pragmatic view. That is the price action shows what ALL the global buyers and sellers feel about the fundamental and earnings story. If the stories are liked, the buyers overwhelm the sellers and the price goes higher. If the stories are not like, the sellers overwhelm the buyers and the price goes lower. More complicated. Simple.
The next step is to apply technical tools to the price action. What the technical tools do is determine a bias (bullish or bearish). They define the risk if all the stories change. They help define targets of where the price could go. Like driving a car there is a destination for stock prices. Most times it doesn’t just go to the finish line. The price works its way toward the finish line. Getting to and through targets become the benchmarks to reach on the journey higher or lower.
So what has the technicals told traders for Meta?
Looking at the hourly chart in general, the price has been volatile in an up-and-down fashion, with a more bearish bias going back to the all-time high reached in August 2025. The all-time high price came in at $796.25, the most recent low price was reached at the end of March at $520.26. That represents a $276 decline or -34.66% fall from the high to the low.
Since an the price has fluctuated between the $520 and $691 (the high price from April 17).
Admittedly, the price action has produced its share of technical failures. When a market trades in a volatile, non-trending fashion, technical tools can lose some of their effectiveness. Nevertheless, they still provide traders with important clues and levels against which risk can be defined and limited.
After bottoming in March (see chart below), Meta shares surged and moved above the 200-day moving average on April 17 (aqua colored overlayed MA line on the chart below). However, the rally stalled near the 61.8% retracement of the decline from the all-time high, at $690.38. Sellers leaned against that retracement level, and the price subsequently moved back below the 200-day moving average.
That break reestablished the 200-day moving average as resistance. Sellers then leaned against the moving average, and the price respected it before accelerating lower during May and June (see the chart below).
Putting it another way, sellers first leaned against the 61.8% retracement (used it to define risk) and then against the lower 200-day moving average (again using it to define risk). Those two technical failures gave sellers the confidence to push the price lower with increased momentum.
Fast-forward to July (see the chart below), and the price began to recover. However, the rally ran into a downward-sloping trendline on July 14. Sellers leaned against that resistance, using the trendline as a level to define and limit their risk, and the price rotated back to the downside.
The decline eventually reached a low near $524, just ahead of the March low at $520.26. That created a clearly defined support area between $520 and $524. Buyers leaned against that area, with risk defined below the March low, and the price rebounded.
The lesson is that both sides had clearly defined levels against which they could trade. Sellers leaned against the trendline resistance, while buyers later leaned against the March low. In each case, the technical level provided the catalyst for the next meaningful price move.
So, how has Meta’s share price reacted since the Muse announcement (see the chart below)?
Ahead of the announcement, Meta had moved above its 100-day moving average at $603.97. However, the price remained below the 200-day moving average and the 38.2% retracement, which were clustered between $623 and $625. It was almost as if traders had pushed the price into a neutral area ahead of the fundamental news, waiting for the next catalyst to determine the directional bias.
Once traders had a chance to digest the Muse announcement on Wednesday, the price surged through both the 200-day moving average and the 38.2% retracement. Breaking above that cluster was a bullish development, and the momentum continued to the upside.
However, traders must also be aware of the next technical target. In this case, a downward-sloping trendline was the next key resistance level. Wednesday’s rally reached $663.50, just short of the trendline near $665.40. After moving lower yesterday, Meta has rebounded again today, reaching $664.24—once again just short of that same trendline.
As a result, sellers continue to lean against the trendline. The fact that it has held on two separate tests increases its importance as a technical barometer.
Stay below the trendline, and the buyers may become frustrated, opening the door for a corrective move back toward the 38.2% retracement and the 200-day moving average between $623 and $625. That area would be the next key test for both buyers and sellers.
Conversely, if the price can break above the trendline—and stay above it—the technical bias would shift more firmly in the buyers’ favor. That should open the door for additional upside momentum toward the July high near $685, followed by the 61.8% retracement near $690.
The roadmap is therefore clearly defined: sellers remain in play below the trendline, while buyers need to force a break above it to take greater control.
Muse gives Meta a clearer path to monetize its massive AI investment through subscriptions, shopping and transactions. Wall Street likes the potential, with JPMorgan upgrading META and raising its target to $820.
Technically, the rally moved above key support between $623 and $625, but has stalled twice near trendline resistance around $665. Stay below, and a correction toward $623–$625 is possible and traders can revisit buying on the dip. Conversely, break above—and stay above the topside targets—and the door opens toward $685 and $690 and maybe the $820 is indeed in the stocks future.
The fundamental story attracted the buyers. The technicals will determine whether they can take the next step.
This article was written by Greg Michalowski at investinglive.com.