Meta Stock Drops After 35% Monthly Surge Due to Muse AI

The Nasdaq-pegged social media leader META experienced a remarkable 35% monthly rally. This momentum followed the debut of its personalized artificial intelligence agent, Muse, which climbed to the summit of the App Store and attracted over three million downloads. Consequently, market sentiment toward the firm transformed from viewing it as an AI capital-burning laggard to a prospective monetization frontrunner. Driven by this enthusiasm, the company’s shares skyrocketed from a trough of $578 to a peak of $779 during September 2026.

Yet, the very catalyst behind META’s equity surge has now triggered a downward correction this week. A recent Guardian investigation revealed that META’s Muse AI inadvertently disclosed a user’s residential address to an interested party on Facebook Marketplace. This incident sparked renewed anxieties regarding the application’s security and its tendency to expose the private details of individuals advertising goods. Specifically, the AI agent instructed the buyer to visit the vendor’s residence to retrieve the merchandise—all without the vendor’s knowledge or consent.

Following the publication of the report, META’s stock retreated from its $779 high down to $715 across a span of just two trading sessions. Simultaneously, Chief Executive Officer Mark Zuckerberg saw his net worth drop by $11 billion over the same 48-hour window as the valuation declined. Because the vendor remained entirely oblivious that the Muse AI agent had dispatched their home address to finalize the transaction independently, investors are now expressing deep apprehension regarding the functionality of Muse.

Also Read: Nvidia Adds $150 Billion to Largest Ever Stock Buyback

META Stock Under the Scanner For Privacy and Safety Concerns

These emerging privacy issues surrounding Muse have left investors cautious regarding META shares. The leadership team, headed by Zuckerberg, must swiftly address safety and privacy gaps. Artificial intelligence agents should not finalize transactions on a vendor’s behalf, nor are they permitted to distribute residential addresses merely because a prospective customer inquires about an item. Should management fail to regain control over these matters, the stock risks sliding beneath the $690 threshold.

Frequently Asked Questions

Why did META stock surge recently?

META shares jumped 35% in a month—reaching a high of $779 in September 2026—following the successful launch of its personalized AI agent, Muse, which surpassed three million downloads on the App Store.

What caused the recent decline in META stock?

The stock dropped from $779 to $715 over two trading sessions after a Guardian report revealed that the Muse AI agent leaked a Facebook Marketplace seller’s home address to a buyer without the seller’s knowledge.

How much money did CEO Mark Zuckerberg lose?

Mark Zuckerberg’s net worth decreased by $11 billion over a two-day period as the company’s equity fell on the charts.

What are investors currently worried about regarding Muse AI?

Investors are concerned about user safety and privacy leaks, specifically that the AI agent autonomously initiates deals and shares sensitive personal information like residential addresses.

What price level is META stock threatened to fall below?

Market analysts note that META stock could drop below the $690 mark if the privacy and safety concerns surrounding the AI agent are not properly managed.

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