Meta announced a new nonvoting Class C share structure to fund its artificial intelligence buildout without diluting Mark Zuckerberg's voting control. The move spooked some investors over dilution language in the filing, though Google used a similar mechanism years earlier. RBC Capital Markets analyst Brad Erickson discusses how AI is driving engagement and ad targeting across Meta's apps, and examines the company's path to monetizing Muse, its AI assistant.
Erickson is more cautious about Muse's consumer potential, noting that Amazon has blocked the assistant from its platform. He also weighs whether Google's own AI assistant poses a competitive threat. The analyst sees clearer near-term revenue opportunities in Muse for small business use cases.
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