The Trading Addict

Issue No. 87  •  Wednesday September 23, 2026

Meta has a new hit on its hands. Its personal AI assistant, Muse, reached approximately 2.5 million downloads in its first 13 days, overtaking ChatGPT on Apple's U.S. free-app chart. Meta shares jumped more than 11% on September 21, as investors embraced the possibility of another major consumer business emerging inside the social-media giant.

Launched September 8, Muse can handle tasks such as arranging travel, completing forms and preparing purchases. Users communicate with it through a dedicated app or WhatsApp. According to Meta, the assistant can continue working after the app closes, returning when it needs approval, including before sending an email or making a purchase. Users decide which services it can access.

Amazon has blocked Muse from accessing its marketplace, saying the agent operated without authorization and raising concerns about account access, transparency and the customer experience. Those are Amazon's allegations, rather than evidence of a confirmed data breach.

The Battle for Your Shopping Cart

Shopify is taking a different approach: it has announced a partnership to bring its Shop Pay checkout into Muse, allowing the assistant to complete purchases from participating merchants.

The commercial appeal extends beyond downloads. Muse offers free access alongside subscriptions priced at $20 and $100 per month, giving Meta a potential source of revenue beyond advertising.

The early results suggest strong consumer curiosity. Whether that becomes a durable business will depend on repeat usage, paying subscribers and reliable execution. Amazon's resistance also exposes a practical limit: an assistant's usefulness depends partly on whether other businesses allow it through the door.

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Netflix is not a failing company. Revenue is growing, the business remains highly profitable and management expects roughly $12.5 billion in free cash flow this year. Advertising revenue is projected to nearly double to about $3 billion, and Netflix still has $27.1 billion available under its share-repurchase authorization.

The problem is the stock. At roughly $72, Netflix is down about 23% in 2026 and far below last year's high above $130. Investors are no longer rewarding good results when the outlook points to slower growth.

Growth Is Slowing

Revenue growth fell from 16.2% in the first quarter to 13.4% in the second quarter. Netflix expects it to slow again to approximately 11.7% in the third quarter. Operating margin also slipped from 34.1% a year earlier to 33.4%, while content amortization is expected to rise about 10% this year.

Engagement has become the larger concern. Netflix says total viewing hours increased 2% during the first half of 2026, but analysts are questioning viewing per subscriber and the lack of breakout original programs. Wells Fargo recently downgraded the stock to Underweight and cut its price target from $80 to $57.

October 20 Is the Next Test

Netflix is scheduled to report earnings on October 20. Its recent history gives shareholders a reason to be cautious: Netflix has declined after each of its last four earnings reports.

The average decline was approximately 7.8%, and three of the four reports knocked roughly 9% to 10% off the stock. At this point, it is no longer one bad reaction. It is a pattern. From $72, another 8% to 10% decline would put Netflix around $65 to $66.

Is There Still Hope?

Yes, but Netflix must earn back investor confidence. Advertising is growing, price increases are working and the company is buying back stock. One major hit, stronger engagement or a better-than-expected forecast could produce a sharp rebound because expectations are already low.

That possibility does not automatically make Netflix worth holding. The shares pay no dividend, and covered-call premiums at a strike where a shareholder would actually be comfortable selling may not provide enough income. Selling a low-strike call simply to collect something could also cap the recovery if the stock finally rebounds.

The Portfolio Decision

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