Meta’s AI Subscriptions Could Add $4.2B Revenue per 1% User Conversion
META•Bank of America kept its Buy rating on Meta Platforms and an $835 price target, citing potential AI monetization after concerns over rising AI spending and infrastructure depreciation. Launch of $7.99 and $19.99 AI subscription tiers in Singapore, Guatemala and Bolivia could generate $4.2 billion in revenue per 1% conversion.
1. Bank of America Maintains Buy Rating and $835 Price Target
Bank of America reiterated its Buy rating on Meta and maintained an $835 price target, highlighting emerging signs of AI monetization that could shift investor sentiment after months of elevated operating and capital expenditures. The firm notes that higher depreciation charges in 2027–28 will test profitability but sees long-term upside from AI product rollouts.
2. Launch of Paid AI Subscription Services
Meta introduced two paid AI subscription tiers, Meta One Plus at $7.99 and Meta One Premium at $19.99 per month, initially rolling out in Singapore, Guatemala and Bolivia with broader expansion planned. Every 1% conversion of its global user base to these services could contribute approximately $4.2 billion in revenue annually.
3. Enterprise Solutions Unit Targets $1 Trillion Opportunity
The newly established Enterprise Solutions unit aims to help businesses deploy and customize AI tools, with the potential to offer excess cloud-computing capacity externally. Bank of America projects the enterprise AI and cloud market could exceed $1 trillion by 2028, offering Meta a durable revenue stream while offsetting risks of overbuilt infrastructure, digital ad reliance, increased competition and regulatory challenges.
