Evercore Reiterates Outperform Rating and $930 Target for Meta Platforms

Evercore ISI reiterated its Outperform rating on Meta Platforms (NASDAQ:META) and maintained a $930 price target after the company announced the rollout of paid subscription offerings across its Family of Apps, including consumer‑level Plus subscriptions on Facebook, Instagram and WhatsApp, the Meta One AI subscription tiers for consumers, and business‑oriented Meta One tiers that add verification, discovery, links, insights, support and workflow tools.

Evercore assumes a blended average revenue per user (ARPU) of $3.50 for the consumer app‑level subscriptions and estimates that a 1 % penetration of its roughly 5.9 billion aggregate daily active users would generate about $2.5 billion of incremental annual revenue and $1.7 billion of incremental operating profit, based on an assumed 70 % incremental margin.

For consumer Plus subscriptions, the firm projects a 2‑4 % penetration rate over the next 2‑3 years, which would translate into $5‑10 billion of additional revenue and $3.5‑7 billion of operating profit by 2028. For the Meta One AI consumer tiers, Evercore assumes 2‑3 % penetration of roughly 1 billion monthly active users at a blended ARPU of $9.99, delivering $2.4‑$3.6 billion of annualised revenue and $1.2‑$1.8 billion of operating profit by 2028, using a 50 % incremental margin.

Regarding business subscriptions, Evercore estimates a 5‑10 % uptake among approximately 200 million business accounts at a blended ARPU of $19.99, creating a $2.4‑$4.8 billion annual revenue opportunity and $1.2‑$2.4 billion of incremental operating profit by 2028.

Aggregating all three subscription streams, Evercore sees the potential for Meta to generate more than $10 billion of incremental revenue and over $5 billion of incremental operating income by 2028. This represents roughly 3 % of Evercore’s above‑street estimate of $370 billion for Meta’s 2028 revenue and about 4 % of its $137 billion operating‑income projection for the same year.

The article notes that it was generated with AI assistance and reviewed by an editor.