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Meta will begin testing two subscription services for its Meta AI app and website.
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The Meta AI subscription services will initially be available in Singapore, Guatemala, and Bolivia.
Mark Zuckerberg, CEO
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Mark Zuckerberg said at Meta's annual shareholder meeting that a potential cloud computing business is 'definitely on the table.'
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Confidence98%
Nearly 98% of Meta's $56.3 billion in first-quarter revenue came from advertising.
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Confidence95%
Meta recorded its fastest growth rate for any quarter since 2021.
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Confidence95%
Meta's Portal video-calling device was discontinued four years after its 2018 debut.
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Confidence98%
Meta acquired virtual reality hardware startup Oculus for $2 billion in 2014.
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Confidence95%
Meta's Reality Labs unit has accumulated over $80 billion in operating losses since late 2020.
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Reality Labs has shifted resources from VR to AI-powered smart glasses.
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Confidence95%
Meta partnered with EssilorLuxottica to produce Ray-Ban Meta glasses.
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Confidence90%
Meta's Ray-Ban Meta glasses have been a notable hardware success.
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Confidence98%
Meta launched a cryptocurrency initiative called Libra in 2019.
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The last remnant of Meta's Libra crypto project shut down in 2022.
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Facebook debuted its Workplace chat product in 2016.
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Meta announced in 2024 that it would eventually close its Workplace service.
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The Meta AI subscriptions will cost $7.99 and $19.99 per month depending on features.
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Meta's stock rose nearly 4% on Wednesday after the announcement of AI subscriptions.
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Analysts at Wolfe Research wrote that Meta's subscriptions could contribute up to $3 billion in revenue for 2027, growing to $16 billion by 2030.
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"Based on our long-term view that the company's scale, AI investments, category leadership position, and product catalysts should enable META to outgrow the digital advertising market, gain scale, and generate new sources of revenue," Wolfe Research analysts recommended buying Meta stock.
Max Willens, analyst at Emarketer
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Max Willens, an analyst at Emarketer, said Meta is a victim of its own success in online ads.
Max Willens, analyst at Emarketer
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"It can be very hard for a corporate parent to sustain enthusiasm for something that is naturally going to be much smaller, likely forever," Max Willens said.
Max Willens, analyst at Emarketer
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"The circumstances around each of Meta's past endeavors are different," Max Willens said. "But I would say that it is hard enough to succeed in one business, let alone two."
Max Willens, analyst at Emarketer
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Max Willens said the subscription push could succeed if viewed as an aid to online advertising rather than an entirely new line of business.
Max Willens, analyst at Emarketer
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Max Willens said that because some of the new services are tailored to creators and power users, the goal could be to get more content for Meta's apps and keep people engaged longer.
Shashi Bellamkonda, research director at Info-Tech Research Group
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Shashi Bellamkonda, research director at Info-Tech Research Group, said Meta has a lot of work to do to build an enterprise business from the ground up.
Shashi Bellamkonda, research director at Info-Tech Research Group
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Shashi Bellamkonda said Meta is so focused on direct-to-consumer offerings that building an enterprise business will be challenging.
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Meta declined to comment.
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