3. Meta Platforms, Inc. (NASDAQ:META)
Forward P/E Ratio: 18.73
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) is one of the Best Data Center Stocks That Are Cheaper Than the S&P 500. Wall Street is bullish on the stock as the analysts’ 12-month average price target suggests more than 41.83% upside from the current level.
Recently, on June 17, Evercore ISI reiterated a Buy rating on Meta Platforms, Inc. (NASDAQ:META) with a price target of $930. A few days earlier, on June 9, Truist also reiterated a Buy rating on the stock with a $840 price target. The positive ratings are based on the company’s launch of new paid subscription plans.
Meta introduced consumer and business subscriptions across its Family of Apps, alongside a new Meta One AI subscription suite. Moreover, App-level Plus plans are rolling out across Facebook, Instagram, and WhatsApp. Meta One AI tiers combine app perks with expanded Meta AI access, while business and creator tiers add verification, discovery tools, insights, and workflow features.
Evercore ISI sees the move as a move to diversify revenue. The firm expects a modest revenue impact but a more meaningful boost to operating income over time, given the high-margin nature of subscriptions. Near-term impact is expected to be limited due to phased availability and likely low initial conversion rates. That said, the firm notes that even modest penetration across Meta’s 3.6 billion-plus daily user base could eventually build into a significant high-margin revenue stream.
On the other hand, Truist estimates the subscription business could generate over $20 billion in high-margin revenue by fiscal 2030, representing roughly 5% of total revenue. The projection assumes user penetration of around 3%, in line with Google’s current subscription rate. The firm sees subscriptions as a growth extender, helping Meta sustain momentum beyond its already strong digital advertising performance.
Meta Platforms, Inc. (NASDAQ:META) develops products that allow people to share and connect with their family and friends using PCs, mobile devices, virtual reality (VR) headsets, and AI glasses. Some of its well-known apps include Facebook, Instagram, and WhatsApp. It operates in the Reality Labs (RL) and Family of Apps (FoA) segments.
