Hunterbrook discloses Meta short position as alternative data signals Muse cooling

Investing.com -- Hunterbrook Capital disclosed a short position in Meta Platforms Inc (NASDAQ: META), pointing to alternative data that reportedly indicates a marked deceleration in adoption for Muse, the social media giant's flagship artificial intelligence application.

The position was revealed alongside a report published by affiliate investigative outlet Hunterbrook Media, which analyzed tracking metrics from alternative-data provider TickerTrends. The data indicates that momentum for Muse, recently highlighted by Meta Chief Executive Officer Mark Zuckerberg as the centerpiece of the company's AI vision, has slowed significantly following its initial surge.

According to the report, weekly downloads for Muse declined 8.1% week-over-week during the seven days ending October 7, averaging approximately 165,000 per day. Daily active user growth also reportedly experienced a sharp contraction, with net daily additions slowing to roughly 74,000 during the first week of October, a 62.4% reduction from the average daily expansion rate of 198,000 recorded in late September.

Hunterbrook's short thesis centers on the premise that market enthusiasm and valuation gains may have outpaced operational realities. Beyond slowing user metrics, the report highlights functional barriers for Muse, including access restrictions imposed by major third-party platforms such as Amazon, as well as heightened scrutiny surrounding data privacy and safety vulnerabilities.

Shares of Meta traded less than 0.3% lower following the publication, suggesting that investors were unperturbed by the data. The social media giant's stock has risen almost 10% in the past month of trading.

Market participants will monitor whether these early alternative-data trends materialize in Meta's upcoming third-quarter financial results.

Original Article

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