Stock Markets May 28, 2026 01:00 PM

Meta Tests 'Meta One' Subscriptions as Potential Engine for Recurring Revenue

Brokerage keeps Buy rating and $1,015 target, citing paid tiers across Instagram, Facebook, WhatsApp and Meta AI

By Nina Shah META

Brokerage Rosenblatt reaffirmed a Buy rating on Meta Platforms and maintained a $1,015 price target, pointing to the company’s initiative to roll out a bundled subscription strategy - dubbed 'Meta One' - across its social and AI products as a potential multibillion-dollar source of recurring revenue. The plan includes modest monthly fees for Instagram, Facebook and WhatsApp, and higher-priced tiers for Meta AI, while analysts highlight both the scale opportunity and the competitive challenges in the subscription and generative AI market.

Meta Tests 'Meta One' Subscriptions as Potential Engine for Recurring Revenue
META

Key Points

  • Rosenblatt reiterated a Buy rating on Meta Platforms and kept a $1,015 price target, citing subscriptions as a new growth avenue.
  • Meta is reportedly testing paid consumer tiers for Instagram and Facebook at $3.99/month, WhatsApp at $2.99/month, and Meta AI tiers at $7.99 and $19.99/month.
  • Rosenblatt estimates existing subscription products contribute roughly $1 billion in annual recurring revenue and projects revenue rising to nearly $256 billion in 2026 from about $201 billion in 2025; EPS expected to be stable then accelerate in 2027.

Rosenblatt has reiterated its Buy rating on Meta Platforms and kept a $1,015 price target, arguing that a concerted push into subscription services under a proposed "Meta One" umbrella could drive meaningful recurring revenue beyond the company’s traditional advertising business.

The brokerage’s note follows recent comments and product teasers from Meta executives, together with media reports from TechCrunch and Bloomberg that indicate the company is testing paid consumer tiers for its social networks and AI offerings.

Rosenblatt analyst Barton Crockett compared the proposed approach to subscription strategies already seen at some competitors, citing Snap and OpenAI as precedents for consumer paid tiers. The note pointed to Snapchat+ - launched in 2022 - as an example of a subscription product gaining traction: that service now reportedly has more than 25 million subscribers and generates roughly $1 billion in annual recurring revenue.

According to the details laid out in the research note, Meta’s initial consumer pricing tests could include $3.99-per-month premium plans for Instagram and Facebook. Those tiers would offer features such as enhanced profile customization, more advanced story tools and expanded engagement options. WhatsApp is also a candidate for monetization with a proposed $2.99 monthly plan that would add premium stickers, themes and customization features.

On the AI front, Rosenblatt says Meta is trialing paid Meta AI tiers. One described offering is a $7.99 "Meta One Plus" plan with expanded image and video generation capabilities, while a $19.99 premium tier is aimed at more advanced AI users. The brokerage also noted that Meta already collects roughly $1 billion in annual recurring revenue today from existing subscription products, including Meta Verified and an ad-free option in Europe.

Rosenblatt emphasized the scale opportunity available to Meta given its user base, quoting more than 3.5 billion daily active users as a foundation for expanding subscriptions at scale. The brokerage projected that Meta’s revenue could grow to nearly $256 billion in 2026 from about $201 billion in 2025, and said adjusted earnings per share are expected to remain broadly stable before accelerating in 2027.

The analyst note also flagged the competitive and execution challenges ahead. Meta is entering an increasingly crowded subscription and AI market where firms such as OpenAI already have established paid user bases, and Rosenblatt observed that Meta still needs to demonstrate its generative AI capabilities in practice.

For investors and markets, the move represents an attempt to diversify revenue away from ads toward more predictable, recurring streams, while retaining exposure to the rapid development cycle of consumer AI and social features.


Summary

Rosenblatt retained a Buy rating and $1,015 target on Meta, highlighting the company’s testing of consumer subscription tiers across Instagram, Facebook, WhatsApp and Meta AI under a potential "Meta One" bundle. Initial price points being trialed include $3.99 for Instagram and Facebook, $2.99 for WhatsApp, and paid Meta AI tiers at $7.99 and $19.99. The firm estimates Meta already derives about $1 billion in ARR from current subscription offerings and forecasts revenue growth to nearly $256 billion in 2026.

Risks

  • Competition and market adoption - Meta faces established paid-user bases from competitors in both subscriptions and generative AI, which could limit uptake and pressure monetization.
  • Execution of generative AI - Rosenblatt noted Meta still needs to demonstrate its generative AI capabilities, introducing execution risk for higher-priced AI tiers.
  • Revenue concentration and transition risk - While subscriptions could diversify revenue, successful scale-up is not guaranteed; failure to convert a significant portion of Meta’s more than 3.5 billion daily users would limit the projected recurring revenue impact.

More from Stock Markets

Anthropic Urges Joint Mechanism to Slow Frontier AI if Self-Improvement Outpaces Risk Controls Jun 4, 2026 S&P Global Upholds Fast-Entry Rules Ahead of SpaceX Public Debut Jun 4, 2026 Insperity Shares Climb After CEO Buys 233,000 Shares Jun 4, 2026 SpaceX Signals Firmness on $135 IPO Price as Roadshow Begins Jun 4, 2026 CME Chief Warns CFTC Approval of Perpetual Crypto Futures Could Create Systemic Risk Jun 4, 2026