Meta has launched a subscription service with advanced AI features. Analysts expect the stock to rise

Meta Platforms has launched the Meta One subscription service, which offers enhanced AI capabilities and additional features on Instagram, Facebook, and WhatsApp. Analysts believe that new AI products and the mitigation of legal risks could support the company’s stock, which has begun to recover in recent weeks after a weak performance in the first half of the year.

Meta has announced the launch of Meta One, a service that will provide new capabilities in the field of artificial intelligence and new features across all of the company’s social media platforms. This includes more than 50 features for content creation, audience engagement, and business management. Subscription prices start at $2.99 per month for individual products, while the package for content creators and businesses will cost $14.99. However, the basic features of the apps and access to Meta AI will remain free.

During the phased rollout, the number of subscriptions and trial sign-ups for Meta One has already reached 15 million, the company reported. It also promised to expand the subscription to the Edits app and its AI glasses.

Meta hopes to diversify its revenue beyond digital advertising and monetize the audience of its services, which numbers in the billions, according to Reuters. The new service was unveiled after the company launched Muse, an AI agent designed to automate everyday tasks, in early September, and in August settled lawsuits related to the operations of its social media platforms, avoiding a massive fine and resolving the uncertainty that had been hanging over the company.

The combination of two factors—the elimination of legal risk and the launch of new AI-based products—could mark the beginning of a sustained trend reversal, according to Dan Russo, co-chief investment officer at Potomac Fund Management, as reported by Bloomberg. Meta’s stock has risen 22% from its August low and is on track for its biggest monthly gain since May 2025, the agency reports. During trading on September 15, the stock gained about 1% and closed the session up 0.7%.

Morgan Stanley analyst Brian Novak is also optimistic about the settlement of the legal proceedings. He pointed to the rally in Alphabet’s stock after the company received a favorable court ruling a year ago in a long-running antitrust case and subsequently unveiled a range of new AI-powered products. Since that ruling, Alphabet’s market value has risen by more than 50%, outperforming the other companies in the “Magnificent Seven” during that period.

In a note dated August 30, a Morgan Stanley analyst stated that Meta could continue to launch new products that “collectively have the potential to add more than $10 to its earnings per share.” Moreover, in his view, this potential was not factored into the stock price.

Not all analysts are confident that the rally will last. Meta’s valuation looks attractive, and the company has short-term catalysts, but the scale of its AI development spending remains a serious risk, according to Cyrus Amini, chief investment officer at Hyphen Wealth Management. “Everything is changing so quickly. It’s hard to say with certainty that any one company will be a long-term winner,” Bloomberg quotes Amini as saying.

According to the agency’s calculations, Meta’s stock is currently trading at a multiple of 18—which reflects the ratio of the stock price to expected annual earnings. This figure is below the 10-year average and more than 30% below the 2025 peaks, according to Bloomberg.

According to MarketWatch, 60 of the 66 analysts covering Meta shares recommend buying them, while the rest maintain a neutral stance. The average price target is $749, which is 12.5% higher than the closing price on September 15.

This article was AI-translated and verified by a human editor