Jim Cramer sees Muse as potentially important enough to change how Wall Street values Meta Platforms Inc. (META), but the company's latest push gives investors a more tangible way to test that thesis: paying businesses.
Meta launched Muse with a free tier alongside subscriptions priced at $20 and $100 per month. That gives the AI agent an immediate monetization path beyond advertising.
The vast majority of users are expected to remain on the free tier, according to Meta AI chief Alexandr Wang, which makes conversion, rather than downloads, the metric investors eventually need to watch.
Muse Is Moving Beyond Individual Productivity
Meta recently introduced Muse for Small Business, allowing companies to connect the agent with tools including Shopify Inc. (SHOP), QuickBooks, Stripe, Slack, Canva and other software they already use to run their businesses.
The potential revenue math is straightforward.
One million customers paying $20 a month would represent $240 million in annualized revenue, while the same number at $100 would represent $1.2 billion. Those are illustrative scenarios, not forecasts, but they show why the size and mix of Meta's paying customer base could eventually matter more than Muse's download count.
Cramer's Bull Case Gets Tested
According to Cramer, Meta should increasingly be viewed as an enterprise company rather than simply a consumer business because of Muse. He argues that the product could help move its valuation from an 18x multiple toward 24-25x.
That valuation argument has already become harder to ignore. Meta trades at about 21.2x forward earnings, according to market data, while shares have gained 25.8% over the past month.
But the more interesting question is no longer whether Muse deserves a higher multiple. It is whether Meta can demonstrate an actual business behind the valuation argument.
Meta formally launched its Enterprise Platform this week, bringing Muse, Muse API, Muse Code and Meta Business Agent into a broader push aimed at businesses and developers. CEO Mark Zuckerberg called it a "next major pillar" of Meta's business.
The Revenue Test Starts Now
Meta does not need Muse subscriptions to replace advertising; even a relatively small enterprise business could become strategically important if it establishes a new recurring revenue stream and increases the value of Meta's AI ecosystem.
The company is also building multiple monetization routes around that ecosystem. Meta One already offers business and creator subscriptions ranging from $14.99 to $499 per month, while Muse can connect directly with the software and commerce systems businesses already use.
For investors, the next catalyst is less about another Muse download milestone and more about evidence of paid adoption, business usage and recurring revenue.
Cramer supplied the bullish valuation thesis; whether Meta can validate it remains to be seen.
