Microsoft's Copilot Update Boosts Stock as Meta's Muse Gains Momentum

Microsoft has updated its Copilot app to include more features and is seeing a positive response from investors. The company's stock price climbed by almost 3% on Friday morning, reaching a peak of 10:31 a.m. ET.

The new version of the app allows users to create custom agents that can communicate in Teams and Outlook. This feature enables Copilot to optimize user value and deliver high-quality output, according to Jacob Andreou, executive vice president for Copilot.

However, Meta's Muse tool is gaining attention as a potential competitor to Copilot. JPMorgan analyst Doug Anmuth raised the bank's price target on Meta to $920 from $820 while maintaining an overweight rating on the stock. He believes that Muse has the potential to become the most widely used consumer AI application since ChatGPT.

Muse is a personal agent that can take actions on a user's behalf, including sending emails and making purchases. It runs on Meta's multimodal Muse Spark model and operates across multiple apps and online services. The agent seeks approval before completing sensitive tasks and continues working even after the user closes the app.