The New Bull Case for Meta
Meta Platforms (NASDAQ: META) has long been one of the most dominant players in digital advertising and social networking. From Facebook to Instagram, and more recently Threads and WhatsApp, the company has an unrivaled ability to capture global attention and convert engagement into revenue. Despite the competitive landscape with TikTok, YouTube, and Snapchat, Meta has consistently demonstrated resilience by leveraging scale, data, and artificial intelligence (AI) to drive both user growth and profitability.
What’s particularly exciting right now is not just Meta’s proven advertising machine but its emerging monetization opportunities in platforms that have yet to reach full revenue potential. According to a recent note from Barclays, WhatsApp and Threads together could generate as much as $25 billion in additional annual revenue over the next few years. If realized, this would significantly boost both earnings and market capitalization, reinforcing Meta’s position as one of the most compelling growth stocks in the market today.
But beyond Barclays’ bullish projections, there are other reasons investors should seriously consider Meta at current levels. The company sits at the intersection of AI innovation, digital advertising dominance, and global platform expansion — a rare trifecta that positions it for sustained long-term growth.
How AI Supercharges Meta’s Profitability
Artificial intelligence isn’t new to Meta — the company has been using AI to improve ad targeting and engagement for years. But with the generative AI wave, Meta is stepping up its efforts in content moderation, ad placement optimization, and product development.
Here’s why this matters for investors:
- Higher Margins from Smarter Ads: AI helps advertisers achieve better ROI, which in turn encourages higher ad spending on Meta’s platforms. That’s a positive feedback loop for revenue.
- AI-Enhanced Products: Tools like AI-driven content recommendations on Reels have already boosted engagement. Similar AI rollouts on WhatsApp and Threads could fuel the next growth leg.
- Cost Efficiencies: AI reduces moderation and operational costs, which directly improves profitability.
Barclays analysts expect AI-driven efficiency to sustain Meta’s growth trajectory well into 2026 and 2027. Importantly, these improvements aren’t just about topline growth — they could translate into billions of dollars in incremental net income.
The $25 Billion WhatsApp and Threads Opportunity
Barclays’ most eye-catching prediction is that WhatsApp and Threads could add $25 billion in revenue to Meta’s business. To put this into perspective, that’s equivalent to adding the entire annual revenue of a mid-cap tech firm in one swoop.
- WhatsApp Monetization: Despite having over 2.7 billion users globally, WhatsApp generates only a fraction of Meta’s revenue. New features like click-to-message ads and business API tools could transform WhatsApp into a digital commerce powerhouse, especially in emerging markets like India, Brazil, and Indonesia.
- Threads Potential: Threads, Meta’s answer to Twitter/X, is still early in its adoption curve. But with integration into Instagram and AI-powered engagement strategies, it could become a valuable advertising channel faster than many expect.
If both platforms achieve even partial success in monetization, Meta’s long-term earnings power would expand meaningfully, potentially adding $9.5 billion in profitability and $260 billion in market cap, according to Barclays’ estimates.
Meta’s Valuation: Not as Stretched as It Seems
Skeptics argue that Meta is already expensive, trading near record highs with a price-to-earnings (P/E) ratio around 27. But that multiple looks much more attractive when you consider:
- Meta’s strong double-digit revenue growth.
- Expanding margins driven by AI efficiencies.
- New revenue streams from under-monetized platforms.
In other words, today’s valuation may actually understate Meta’s true potential, especially if AI and WhatsApp/Threads monetization play out as expected.
Wall Street Sentiment: Broadly Bullish
Wall Street analysts remain overwhelmingly bullish on Meta. The consensus price target now sits at $870 per share, suggesting ~16% upside. The most optimistic target projects a move to $1,000, which would represent nearly 25% gains from current levels.
Interestingly, Susquehanna analysts have also noted that Meta could experience both top- and bottom-line acceleration if its monetization and AI-driven efficiencies align. This type of “double acceleration” is rare and often leads to strong multiple expansion in growth stocks.
Why Meta May Be Underestimated
Meta’s ability to continuously reinvent itself is often overlooked. Many doubted the company when TikTok surged in popularity, yet Instagram Reels quickly became a strong competitor. Similarly, skepticism around Threads may be premature — Meta has the distribution power and financial resources to scale new products at a pace rivals cannot match.
Additionally, Meta’s push into the metaverse and immersive experiences may seem distant, but these investments could pay off over the next decade. Even if they remain a long-term bet, the company’s core ad business and AI monetization opportunities more than justify current valuations.
The Bigger Picture
Meta’s story is about more than quarterly earnings — it’s about a company that has mastered the art of scaling attention into revenue while continuously finding new growth avenues. The $25 billion revenue boost from WhatsApp and Threads is just the latest catalyst, but it highlights Meta’s ongoing ability to unlock value from underutilized assets.
Investors looking for exposure to AI, digital advertising, and global social media dominance should keep Meta at the top of their watchlist. With strong analyst support, compelling monetization opportunities, and valuation that may prove conservative, Meta looks positioned to deliver attractive returns well into 2026 and beyond.