Meta Muse may cost up to $445 per user a year, but the author stays bullish on Meta
Morgan Stanley estimates Meta earns about $70 per user a year while Muse costs up to $445 per user annually, but the author calculates that is only about 0.5% of revenue, worth it to win users free before selling agent ads.
🚨 One $META Muse user can cost ~$445 a year. ✅ Muse is Meta's free AI agent. ✅ Meta makes ~$70 a year per user, per Morgan Stanley. ➡️ Sounds like a disaster, right? Nope. Do the math. ✅ Muse had ~2.73 million daily users on Oct 6. ✅ New users per day slowed from ~198K to ~74K in a month. ➡️ Slower adds = a smaller bill too. ➡️ 2.73 million x $445 = ~$1.2b a year, at MS's ceiling. ✅ Meta did $60.8b of revenue last quarter, up 28%. ➡️ That's ~0.5% of revenue to win the AI agent race. ✅ MS sees the real money in an agent ad auction, late '27 or '28 at the earliest. ➡️ Get everyone hooked free now, then run the auction. ➡️ That's why I'm still pretty bullish Meta!