Is Meta’s next growth engine subscriptions?
Investing.com -- Meta Platforms’ major push into subscription services across Instagram, Facebook, WhatsApp and Meta AI, a move that could generate billions of dollars in recurring revenue.
Brokerage firm Rosenblatt reiterated its “Buy” rating on Meta Platforms and maintained a $1,015 price target, arguing that the company’s new “Meta One” subscription umbrella could become a significant growth driver beyond advertising.
The note follows recent comments and product teasers from Meta executives, alongside media reports from TechCrunch and Bloomberg, suggesting Meta plans to introduce paid consumer tiers for its social media and AI products.
Rosenblatt analyst Barton Crockett said the strategy mirrors successful subscription models already deployed by rivals such as Snap and OpenAI. Snapchat+, launched in 2022, now reportedly has more than 25 million subscribers and generates roughly $1 billion in annual recurring revenue.
Meta’s upcoming offerings are expected to include $3.99-per-month premium tiers for Instagram and Facebook, featuring profile customization, advanced story tools and enhanced engagement options. WhatsApp could also launch a $2.99 monthly plan with premium stickers, themes and customization features.
The company is additionally testing paid Meta AI tiers, including a $7.99 “Meta One Plus” plan with expanded image and video generation capabilities and a $19.99 premium version aimed at advanced AI users.
Rosenblatt estimates Meta currently generates around $1 billion in annual recurring revenue from existing subscription products such as Meta Verified and Europe’s ad-free offering. However, the firm believes the company’s massive user base of more than 3.5 billion daily active users gives it the scale to significantly expand recurring revenue streams.
Meta is entering an increasingly competitive subscription and AI market where companies such as OpenAI already have established paid user bases. Rosenblatt also noted Meta is still proving its capabilities in generative AI.
The brokerage forecasted Meta’s revenue will rise to nearly $256 billion in 2026 from about $201 billion in 2025, while adjusted earnings per share are expected to remain broadly stable before accelerating in 2027.