Meta Rises 3.7% on Subscription Plans as $125B–$145B AI Capex Looms
META•Meta Platforms rallied 3.74% after unveiling paid subscription plans for Facebook, Instagram, WhatsApp and Meta AI, aiming to offset its $125–145 billion AI capex in 2026. Concurrently, LongPoint launched a new SavvyLong (2X) Meta Platforms ETF on the TSX, offering leveraged exposure to Meta shares for Canadian investors.
1. Meta Unveils Subscription Plans
In May 2026 Meta rolled out paid subscriptions for Facebook, Instagram, WhatsApp and its Meta AI service, charging monthly fees for ad-free feeds and premium features. The new model aims to generate recurring revenue beyond advertising and directly monetize user engagement.
2. Q1 Revenue and AI Capex Pressure
Meta posted $56.31 billion in first-quarter revenue with ad metrics showing solid growth, while capital expenditure soared to $19.84 billion to support AI infrastructure. The company forecasts $125–145 billion in AI-related capex for 2026, raising concerns about free cash flow and profitability.
3. Launch of 2X METU ETF in Canada
LongPoint introduced the SavvyLong (2X) META ETF on the TSX, offering two times leveraged long exposure to Meta shares in Canadian dollars. This alternative mutual fund targets daily 2X returns and carries amplified risk through leverage, appealing to sophisticated investors seeking tactical single-stock strategies.
