Meta Platforms (META) is in focus after the social media and AI behemoth unveiled a sweeping new subscription strategy, its most ambitious push yet to build a revenue stream beyond digital advertising.
The company announced it will begin testing paid tiers for its Meta AI chatbot under a new “Meta One” brand, alongside premium subscription plans for Instagram, Facebook, and WhatsApp.
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The move signals a fundamental shift in how Meta intends to monetize its 3.56 billion daily active users. At the time of writing, META stock is down more than 3% versus the start of this year.
www.barchart.comWhat AI Chatbot Subscriptions Mean for Meta Stock
For years, Meta Platforms has operated one of the most profitable advertising businesses in the world — but that model has a ceiling.
The introduction of AI chatbot subscriptions opens an entirely new monetization layer that sits on top of an already-engaged user base comprising billions worldwide.
Crucially, Meta’s pricing is deliberately undercut relative to rivals: OpenAI charges $20 per month for ChatGPT Plus and has surpassed 50 million paid subscribers.
If the company captures even a fraction of that demand at its $7.99 entry price, the math becomes compelling, warranting an investment in META shares at current levels.
Rosenblatt Sees Massive Further Upside in META Shares
In a post-announcement research note, Rosenblatt’s senior analyst Barton Crocket maintained his “Buy” rating on META stock, with a $1,015 price target indicating potential upside of more than 60% from here.
In his research note, Crocket dubbed artificial intelligence chatbot subscriptions a “multi-billion dollar revenue opportunity,” pointing to Snapchat+ as a comparable, which has more than 25 million subscribers and generates about $1 billion in annual recurring revenue.
According to him, Meta Platforms — with a user base more than 100x larger — has an unparalleled in-app marketing funnel to drive subscription adoption at scale.
Note that META has a history of closing June with over 3% gain on average — a seasonal pattern that makes it even more attractive to own in the near term.
What’s the Consensus Rating on Meta Platforms?
Other Wall Street firms also remain positive on META shares, especially since bears have recently failed to crash them below their 20-day and 50-day moving averages (MAs).
The consensus rating on Meta Platforms remains a “Strong Buy,” with the mean price target of about $824 indicating potential upside of more than 30% from here.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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