- Meta launched Meta One, a subscription service offering expanded AI usage and premium features across Facebook, Instagram, and WhatsApp, including Muse Image and Muse Video generation and the Instagram Restyle editing tool.
- Pricing spans $2.99/month for single products, $7.99/month for individual AI bundles, and $14.99 to $499/month for creator and business tiers, with 50-plus features spanning content creation, audience engagement, and business management.
- Early subscription traction is material: Appfigures data shows Instagram daily worldwide revenue averaging $1.2 million and Facebook $528,000 as of the week of September 9, up 475% and 143% respectively from the prior week.
- Sell-side reaction was positive: Rosenblatt reiterated Buy with an $886 price target and Citi maintained Buy with an $800 target, placing Meta on a 90-day upside catalyst watch ahead of the September 23 Connect event where Muse and Meta glasses updates are expected.
- Street revenue estimates for the subscription push: BNP Paribas forecasts $13.5 billion in added revenue by 2028 and Truist estimates $20 billion by 2030.
- A Seeking Alpha bull case sets a $1,000 per share target, roughly 47% upside, arguing the market underappreciates Meta's AI-driven non-advertising revenue potential after a 24% one-month surge.
Quotes
“Meta on Tuesday introduced a new subscription service called Meta One, offering expanded AI usage and other premium features across Facebook, Instagram, and WhatsApp.”
“Rosenblatt reiterated a Buy rating and an $886 price target on Meta following the company’s expansion of its subscription business.”
“The subscription push gives Meta another potential source of revenue beyond digital advertising at a time when competition for online ad spending remains intense.”