Key Insights:
- Cantor Fitzgerald raised Meta Stock price target to $807, citing strong financials and WhatsApp ad monetization potential.
- Meta confirmed that over 1.5 billion users access WhatsApp’s Updates tab daily, supporting ad revenue scalability.
- Wells Fargo estimates WhatsApp ads could add $6 billion in revenue, projecting Instagram-like monetization over time
Meta Platforms Inc. has introduced advertising to WhatsApp, a platform used daily by over 1.5 billion people. Analysts believe this development may open a multi-billion-dollar revenue stream and push Meta stock closer to the $800 level.
Cantor Fitzgerald Raises Meta Stock Price Target to $807
On Wednesday, Cantor Fitzgerald increased its price target on Meta Platforms Inc. (NASDAQ:META) to $807, up from $676, while maintaining an Overweight rating on the stock. The firm cited strong financial performance and new monetization strategies, particularly around WhatsApp, as core drivers behind the revised projection.
Notably, Meta stock is currently trading near its 52-week high of $740, with the company’s market capitalization standing at approximately $1.75 trillion. According to InvestingPro, Meta has maintained a gross profit margin of 81.77% and recorded 19.37% revenue growth over the past twelve months, indicating sustained operational efficiency and robust top-line expansion.
In addition, Cantor Fitzgerald’s analysis focused on the rollout of advertising within WhatsApp, a platform that has largely remained ad-free since its acquisition in 2014. The firm viewed the ad integration, specifically Promoted Channels and Status ads, as a scalable revenue model that avoids disruption to the core messaging experience.
WhatsApp Updates Tab Usage Reaches 1.5 Billion Daily Users
More so, Meta stock has received a boost as the company disclosed during its first-quarter earnings call that WhatsApp currently has more than 3 billion monthly active users globally. Intriguingly, 100 million are in the United States. New user behavior data further showed that the Updates tab, where Meta plans to host advertisements, sees daily engagement from 1.5 billion users.
Additionally, trial documents from the FTC vs. Meta case also revealed WhatsApp’s user engagement ratio. Approximately 82% of monthly active users log in daily, with each daily user viewing around 50 status updates.
Consequently, this level of activity suggested that the Updates tab may provide sufficient visibility for advertisers without requiring heavy ad saturation. Furthermore, these developments may push Meta stock to the $800-plus target.
Wells Fargo Estimated a $6 Billion Opportunity
Meanwhile, Wells Fargo maintained its Overweight rating on Meta and reaffirmed a price target of $664. In its latest research note, the firm estimated that the WhatsApp ad rollout could eventually contribute an additional $6 billion in annual revenue for the company. This figure assumes that WhatsApp achieves an ad load equivalent to roughly one-quarter of that on Instagram and Facebook.
Moreover, the financial institution also noted that this revenue potential may be realized by fiscal year 2027. It projects that WhatsApp’s monetization could follow a similar trajectory to that of Instagram, which began with limited advertising and later scaled to become one of Meta’s largest ad channels.
Wells Fargo’s model suggested that if WhatsApp reaches even modest ad load levels, the earnings before interest and taxes (EBIT) and earnings per share (EPS) could grow by mid-single digits within the next two years.
Meta Expands Video Features and Competes for AI Talent
Further supporting a Meta Stock surge, the company is advancing other initiatives aimed at increasing user engagement and platform utility. The company announced a major update to Facebook, combining Reels and long-form videos into a unified format. This change is intended to streamline video publishing, improve discoverability, and offer creators more tools and customizable audience controls.
Meta has also expanded integration with the fediverse through Threads, offering users the ability to access and search content from decentralized social media platforms. These features aim to increase user retention and position Meta products within emerging digital communities.
In terms of workforce development, Meta has made aggressive efforts to attract artificial intelligence professionals. Reports indicated the company offered signing bonuses up to $100 million in attempts to recruit staff from OpenAI. However, OpenAI CEO Sam Altman stated that no key personnel had accepted the offers, reflecting the high competition for AI expertise in the current market.