Meta Platforms Inc.'s new subscription offering for its social media and AI apps could generate $20 billion in revenue by 2030, according to analysts at Truist on Tuesday. Meta launched paid subscriptions for Instagram, Facebook, WhatsApp and Meta AI last month. Truist cited the company's continued outperformance in digital advertising and diversification into new revenue streams as reasons for the projection. Meta shares gained 0.2% in overnight trading after closing 0.1% lower in the regular session, with Tuesday marking the third straight day of losses for the stock.
Truist Projects $20 Billion Subscription Revenue by 2030
"We remain constructive on Meta as the company continues to outgrow the digital ad while also diversifying into new revenue streams, including subscriptions," Truist analysts said in their investor note, reported by CNBC. The research firm estimates these features could attract more than 360 million paid subscribers, generating revenue equivalent to roughly 5% of Meta's total sales. Meta continues to derive the vast majority of its revenue from digital advertising, and total revenue surged 33% to $56.3 billion last quarter—the fastest growth rate since the December 2021 quarter.
Truist reiterated its 'Buy' rating on Meta, maintaining its price target of $840. That implies nearly 44% upside from Tuesday's close. META stock is down 11% year to date, compared to the 14.2% rise in Invesco QQQ Trust Series 1 (QQQ).
Meta Subscription Pricing and Features
Last month, Meta announced the rollout of subscription plans for its apps, with Facebook Plus and Instagram Plus priced at $3.99 per month and WhatsApp Plus at $2.99 per month, according to details shared with multiple media outlets. The company also said subscriptions for its AI chatbot, Meta AI, would cost $7.99 per month for the basic tier and $19.99 per month for the premium tier.
"Over time, we see Meta offering other subscription types beyond the ones we discussed above including subscriptions supporting its hardware offerings particularly around Meta glasses with added functionality like storage and longer recording," according to Truist.
Analyst Ratings Maintain Buy Recommendations
Currently, 58 of 64 analysts recommend 'Buy' or higher on META stock, and six rate it 'Hold,' according to Koyfin. Their average price target of $828.80 implies 42% upside from the stock's last close.
Meta Lays Off 10% of Workforce Amid AI Spending Increase
The subscription announcement comes close on the heels of Meta laying off 10% of its 78,000-person workforce, in part to fund its AI spending. In April, Meta raised its 2026 guidance for AI-related capital expenditures to between $125 billion and $145 billion, up from a prior range of $115 billion to $135 billion.
Stocktwits Sentiment Shifts to Bearish
On Stocktwits, the debate has lately centered on Meta's stock underperformance relative to tech peers. The retail sentiment for META shifted to 'bearish' from 'neutral.' "$META Another day another disaster in Zuck world. Meta stock going nowhere. These morons overcommitted over risked. Paid billions to Superintelligence team who has not produced await do far. Can't even release an API," a trader said. "Any other company Zuck would have been kicked out as CEO. Worst CEO of a mag 7. Here what saved him is that he is the founder with super majority voting shares."
Still others were upbeat about its AI investments yielding results. One of the traders referenced Nvidia CEO Jensen Huang's recent remark where he said "nobody uses AI better than Meta" as an argument in favour of the company.
FAQ
What revenue could Meta's subscriptions generate by 2030?
Truist analysts project Meta's subscription offerings for Instagram, Facebook, WhatsApp and Meta AI could generate $20 billion in revenue by 2030, equivalent to roughly 5% of Meta's total sales.
How much does Meta charge for its new subscription plans?
Meta announced Facebook Plus and Instagram Plus at $3.99 per month, WhatsApp Plus at $2.99 per month, and Meta AI subscriptions at $7.99 per month for the basic tier and $19.99 per month for the premium tier.
What is Truist's price target for Meta stock?
Truist maintains a 'Buy' rating on Meta with a price target of $840, implying nearly 44% upside from Tuesday's close. Currently, 58 of 64 analysts recommend 'Buy' or higher on META stock, with an average price target of $828.80.
