Meta Plans Subscription Services to Diversify Revenue Streams
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 39 minutes ago
0mins
Source: Fool
- Revenue Diversification Strategy: Meta has announced plans to reduce its reliance on ad revenue by launching subscription services like WhatsApp Plus, Instagram Plus, and Facebook Plus, with expected monthly fees of a few dollars appealing to heavy users, thereby opening new revenue streams for the company.
- Opportunities for Content Creators: The new subscription services will provide content creators and marketers with enhanced features and customization options, similar to paid plans on X, enabling them to create more engaging posts and expand their audience, further enhancing Meta's advertising appeal.
- AI Subscription Testing: Meta is testing a Meta One Plus subscription at $7.99 per month and a premium version at $19.99, aiming to leverage its user data to offer personalized advice and compete with other chatbots, thus creating new revenue streams in the AI sector.
- Stock Investment Appeal: Despite a 7% drop in Meta's stock at the start of 2026, its price-to-earnings ratio of 23 is lower than the S&P 500's 26, and combined with potential subscription growth opportunities, long-term investors may find the stock attractive, with expectations of billions in new revenue in the future.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy META?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 632.510
Low
655.15
Averages
824.71
High
1117
Current: 632.510
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Meta Plans Subscription Services to Diversify Revenue Streams
- Revenue Diversification Strategy: Meta has announced plans to reduce its reliance on ad revenue by launching subscription services like WhatsApp Plus, Instagram Plus, and Facebook Plus, with expected monthly fees of a few dollars appealing to heavy users, thereby opening new revenue streams for the company.
- Opportunities for Content Creators: The new subscription services will provide content creators and marketers with enhanced features and customization options, similar to paid plans on X, enabling them to create more engaging posts and expand their audience, further enhancing Meta's advertising appeal.
- AI Subscription Testing: Meta is testing a Meta One Plus subscription at $7.99 per month and a premium version at $19.99, aiming to leverage its user data to offer personalized advice and compete with other chatbots, thus creating new revenue streams in the AI sector.
- Stock Investment Appeal: Despite a 7% drop in Meta's stock at the start of 2026, its price-to-earnings ratio of 23 is lower than the S&P 500's 26, and combined with potential subscription growth opportunities, long-term investors may find the stock attractive, with expectations of billions in new revenue in the future.
See More
Broadcom's Earnings Report to Impact AI Chip Market
- Earnings Significance: Broadcom's earnings report is deemed more critical than any of the Magnificent Seven companies as it serves as a barometer for the rapidly changing custom AI chip market, particularly in training and inference, showcasing its influence in the semiconductor and infrastructure software sectors.
- AI Revenue Growth: Broadcom anticipates that 40% of its upcoming AI revenue will stem from networking rather than traditional chips, indicating the company's rapid growth in the AI networking space and the shifting market demands.
- Collaboration and Innovation: Partnering with Alphabet to design Google's Tensor Processing Units (TPUs), Broadcom emphasized the need for custom chips for AI inference and training during its earnings call, suggesting that XPUs will surpass GPU designs, driving the evolution of data centers.
- Long-term Investment Opportunity: With growth potential in AI chips and networking, alongside its legacy semiconductor and infrastructure software segments, Broadcom presents an excellent opportunity for long-term investors, and stakeholders should pay close attention to its June 3 earnings call for deep insights into industry trends.
See More
Oklo Develops Small Nuclear Reactors to Address Grid Limitations
- Market Opportunity and Risks: Oklo Inc. is developing its Aurora modular reactor to deliver 15-75 megawatts of carbon-free baseload power, yet this massive market opportunity comes with significant risks and potential dilution for shareholders.
- Key Partnership Agreements: Oklo has inked a crucial deal with data center operator Switch to potentially provide up to 12 gigawatts of power over the next 20 years, while also reaching an agreement with Meta to deliver around 1.2 gigawatts to its Ohio campus by 2030.
- Fuel Recycling Business Development: Oklo is developing a fuel recycling business to convert spent nuclear fuel into usable power sources, aimed at lowering long-term fuel costs and managing critical supply chain risks, thereby enhancing the company's market competitiveness.
- Regulatory Challenges and Execution Risks: While Oklo is pursuing a faster Department of Energy authorization pathway to expedite construction of its first plant, the regulatory approval process for nuclear projects is lengthy and unpredictable, with the company not expecting to generate revenue until at least 2028, facing high execution risks.
See More
Big Tech's Debt Surge Fuels AI Investment Ambitions
- Debt Financing Trend: Year-to-date, AI-related companies have issued approximately $140 billion in investment-grade bonds, accounting for 49% of total investment-grade issuance, indicating a growing reliance on debt financing that may impact future financial stability.
- High-Yield Bond Market: AI-related firms represent 38% of the high-yield corporate bond market with around $21 billion in issuance, suggesting an increasing market appetite for these companies despite the accompanying financial risks.
- Alphabet's Debt Innovation: Alphabet has become the first tech company in decades to issue a 100-year bond, raising $31.51 billion through a global bond offering in February, showcasing its strong market influence and demand for long-term financing.
- Capital Expenditure Plans: Google, Amazon, Microsoft, and Meta collectively plan to increase capital expenditures to $725 billion by 2026, a staggering 77% increase from last year's record of $410 billion, indicating a strong commitment to AI investments but potentially leading to higher debt burdens.
See More
Oklo Plans to Build Small Modular Reactors for Data Centers
- Market Opportunity and Risks: Oklo, a pre-revenue nuclear power company with a market cap of around $12 billion, plans to provide reliable power to AI data centers through small modular reactors, but faces significant risks related to securing regulatory approval and potential construction delays.
- Technology and Partnerships: The company's Aurora powerhouse is designed to deliver 15-75 megawatts of carbon-free baseload power, and it has inked a deal with data center operator Switch that could reach 12 gigawatts over the next 20 years, indicating substantial market potential.
- Financing and Liquidity: After raising over $1 billion in capital earlier this year, Oklo ended the first quarter with $2.5 billion in liquidity and no debt, providing a solid runway to fund projected capital expenditures of $350 million to $450 million.
- Regulatory Challenges: Although Oklo is pursuing a faster Department of Energy authorization pathway for its first plant at Idaho National Laboratory, its initial application was denied in 2022, highlighting the complex and unpredictable nature of nuclear project regulatory approvals.
See More
Latest Rating Changes on Wall Street
- Executive Rating Updates: Goldman Sachs initiates coverage on HawkEye 360 with a Buy rating, emphasizing its status as a profitable RF signals intelligence satellite operator, which is expected to achieve substantial revenue and earnings growth, reflecting strong confidence in its market potential.
- Dell Rating Upgrade: Morgan Stanley upgrades Dell from Underweight to Equal Weight, admitting prior market expectations were incorrect, highlighting Dell's superior supply chain management and execution compared to peers, enabling effective capture of critical demand and market share gains.
- MedTech Company Upgrade: Wells Fargo upgrades Tandem Diabetes Care to Overweight, citing an attractive risk/reward profile in the medical technology sector, indicating optimism about its future growth potential.
- Microsoft Market Performance Initiation: Citizens initiates Microsoft with a Market Outperform rating and a $550 price target, reflecting strong market performance potential despite a 7% decline year-to-date, indicating resilience in its business model.
See More
Meta Plans Subscription Services to Diversify Revenue Streams
- Revenue Diversification Strategy: Meta has announced plans to reduce its reliance on ad revenue by launching subscription services like WhatsApp Plus, Instagram Plus, and Facebook Plus, with expected monthly fees of a few dollars appealing to heavy users, thereby opening new revenue streams for the company.
- Opportunities for Content Creators: The new subscription services will provide content creators and marketers with enhanced features and customization options, similar to paid plans on X, enabling them to create more engaging posts and expand their audience, further enhancing Meta's advertising appeal.
- AI Subscription Testing: Meta is testing a Meta One Plus subscription at $7.99 per month and a premium version at $19.99, aiming to leverage its user data to offer personalized advice and compete with other chatbots, thus creating new revenue streams in the AI sector.
- Stock Investment Appeal: Despite a 7% drop in Meta's stock at the start of 2026, its price-to-earnings ratio of 23 is lower than the S&P 500's 26, and combined with potential subscription growth opportunities, long-term investors may find the stock attractive, with expectations of billions in new revenue in the future.
See More
Broadcom's Earnings Report to Impact AI Chip Market
- Earnings Significance: Broadcom's earnings report is deemed more critical than any of the Magnificent Seven companies as it serves as a barometer for the rapidly changing custom AI chip market, particularly in training and inference, showcasing its influence in the semiconductor and infrastructure software sectors.
- AI Revenue Growth: Broadcom anticipates that 40% of its upcoming AI revenue will stem from networking rather than traditional chips, indicating the company's rapid growth in the AI networking space and the shifting market demands.
- Collaboration and Innovation: Partnering with Alphabet to design Google's Tensor Processing Units (TPUs), Broadcom emphasized the need for custom chips for AI inference and training during its earnings call, suggesting that XPUs will surpass GPU designs, driving the evolution of data centers.
- Long-term Investment Opportunity: With growth potential in AI chips and networking, alongside its legacy semiconductor and infrastructure software segments, Broadcom presents an excellent opportunity for long-term investors, and stakeholders should pay close attention to its June 3 earnings call for deep insights into industry trends.
See More
Oklo Develops Small Nuclear Reactors to Address Grid Limitations
- Market Opportunity and Risks: Oklo Inc. is developing its Aurora modular reactor to deliver 15-75 megawatts of carbon-free baseload power, yet this massive market opportunity comes with significant risks and potential dilution for shareholders.
- Key Partnership Agreements: Oklo has inked a crucial deal with data center operator Switch to potentially provide up to 12 gigawatts of power over the next 20 years, while also reaching an agreement with Meta to deliver around 1.2 gigawatts to its Ohio campus by 2030.
- Fuel Recycling Business Development: Oklo is developing a fuel recycling business to convert spent nuclear fuel into usable power sources, aimed at lowering long-term fuel costs and managing critical supply chain risks, thereby enhancing the company's market competitiveness.
- Regulatory Challenges and Execution Risks: While Oklo is pursuing a faster Department of Energy authorization pathway to expedite construction of its first plant, the regulatory approval process for nuclear projects is lengthy and unpredictable, with the company not expecting to generate revenue until at least 2028, facing high execution risks.
See More
Big Tech's Debt Surge Fuels AI Investment Ambitions
- Debt Financing Trend: Year-to-date, AI-related companies have issued approximately $140 billion in investment-grade bonds, accounting for 49% of total investment-grade issuance, indicating a growing reliance on debt financing that may impact future financial stability.
- High-Yield Bond Market: AI-related firms represent 38% of the high-yield corporate bond market with around $21 billion in issuance, suggesting an increasing market appetite for these companies despite the accompanying financial risks.
- Alphabet's Debt Innovation: Alphabet has become the first tech company in decades to issue a 100-year bond, raising $31.51 billion through a global bond offering in February, showcasing its strong market influence and demand for long-term financing.
- Capital Expenditure Plans: Google, Amazon, Microsoft, and Meta collectively plan to increase capital expenditures to $725 billion by 2026, a staggering 77% increase from last year's record of $410 billion, indicating a strong commitment to AI investments but potentially leading to higher debt burdens.
See More
Oklo Plans to Build Small Modular Reactors for Data Centers
- Market Opportunity and Risks: Oklo, a pre-revenue nuclear power company with a market cap of around $12 billion, plans to provide reliable power to AI data centers through small modular reactors, but faces significant risks related to securing regulatory approval and potential construction delays.
- Technology and Partnerships: The company's Aurora powerhouse is designed to deliver 15-75 megawatts of carbon-free baseload power, and it has inked a deal with data center operator Switch that could reach 12 gigawatts over the next 20 years, indicating substantial market potential.
- Financing and Liquidity: After raising over $1 billion in capital earlier this year, Oklo ended the first quarter with $2.5 billion in liquidity and no debt, providing a solid runway to fund projected capital expenditures of $350 million to $450 million.
- Regulatory Challenges: Although Oklo is pursuing a faster Department of Energy authorization pathway for its first plant at Idaho National Laboratory, its initial application was denied in 2022, highlighting the complex and unpredictable nature of nuclear project regulatory approvals.
See More
Latest Rating Changes on Wall Street
- Executive Rating Updates: Goldman Sachs initiates coverage on HawkEye 360 with a Buy rating, emphasizing its status as a profitable RF signals intelligence satellite operator, which is expected to achieve substantial revenue and earnings growth, reflecting strong confidence in its market potential.
- Dell Rating Upgrade: Morgan Stanley upgrades Dell from Underweight to Equal Weight, admitting prior market expectations were incorrect, highlighting Dell's superior supply chain management and execution compared to peers, enabling effective capture of critical demand and market share gains.
- MedTech Company Upgrade: Wells Fargo upgrades Tandem Diabetes Care to Overweight, citing an attractive risk/reward profile in the medical technology sector, indicating optimism about its future growth potential.
- Microsoft Market Performance Initiation: Citizens initiates Microsoft with a Market Outperform rating and a $550 price target, reflecting strong market performance potential despite a 7% decline year-to-date, indicating resilience in its business model.
See More
