tech
Truist says Meta has found its next $20 billion business, stock set to gain more than 40%
Analysts at Truist estimate Meta's new subscription model could generate over $20 billion in revenue by 2030.
TL;DR
- Truist maintains a buy rating on Meta Platforms with a price target of $840, suggesting a potential 44% upside.
- Meta is diversifying revenue streams beyond digital advertising, focusing on subscriptions.
- New consumer-focused 'Plus' tiers on Facebook, Instagram, and WhatsApp, along with paid Meta AI offerings, are expected to attract over 360 million paid subscriptions.
- These subscriptions could generate over $20 billion in high-margin revenue by 2030, making up about 5% of Meta's total revenue.
- Premium subscriptions, including Meta OnePlus and Meta One Premium, leverage advances in Meta's multimodal reasoning model, Muse Spark.
- Projected annual revenues by 2030: Instagram Plus ($10 billion), Meta AI ($6.5 billion), Facebook Plus ($2.8 billion), and WhatsApp Plus ($2 billion).
- Subscription prices range from $2.99 to $19.99 per month, with plans for hardware offerings like Meta glasses also being considered.