Bank of America has reaffirmed its Buy recommendation for Meta Platforms and left its price objective at $835, citing early indications that the company may begin to monetize artificial intelligence efforts and win enterprise customers. The bank said these developments could help reverse investor unease following a marked increase in Meta’s operating and capital expenditures tied to AI.
Meta shares have underperformed the wider market since the company’s October earnings update emphasized a sizable uptick in spending to support AI initiatives. Investors have expressed doubts about whether the sizable infrastructure expansion will yield adequate returns, particularly given forecasts for higher depreciation charges in 2027 and 2028.
BofA identified AI-driven product introductions and progress in large language models as likely principal catalysts for Meta’s stock over the coming year. The bank pointed to Meta’s recently launched paid AI subscription service, which includes a $7.99-per-month "Meta One Plus" tier and a $19.99-per-month "Meta One Premium" tier. Those subscription offerings are being rolled out first in Singapore, Guatemala and Bolivia, with plans for broader expansion.
According to BofA’s calculations, modest consumer uptake could translate into material revenue. The bank estimated that each 1% conversion of Meta’s user base to paid AI subscriptions, at an average revenue of about $10 per month, would produce roughly $4.2 billion in annual revenue. BofA said that figure equates to roughly a 1.5% positive swing relative to consensus 2027 revenue projections.
Beyond consumer subscriptions, BofA underscored Meta’s newly formed Enterprise Solutions unit, which is tasked with helping businesses deploy and tailor AI tools. In parallel, Meta CEO Mark Zuckerberg has suggested that if the company’s AI infrastructure buildout produces spare capacity, Meta could eventually offer cloud-computing capacity to external customers.
The bank sees longer-term potential in enterprise AI services and cloud infrastructure, noting that the broader enterprise AI and cloud market might exceed $1 trillion by 2028. BofA said enterprise clients could deliver a more durable revenue mix for Meta and help mitigate some of the risks tied to building out excess AI capacity.
Still, BofA cautioned that significant risks persist. Those include Meta’s continued heavy reliance on digital advertising, elevated and ongoing AI-related spending, intensifying competition from AI-native platforms, and continuing regulatory headwinds.
Bottom line: BofA remains positive on Meta’s prospects for monetizing AI through both consumer subscriptions and enterprise services, while flagging the financial and competitive risks that could temper outcomes.