Meta stock price target maintained by Wells Fargo on WhatsApp ad potential

Wells Fargo (NYSE:WFC) maintained its Overweight rating and $664.00 price target on Meta Platforms Inc. (NASDAQ:META) stock on Tuesday, as the stock trades near its 52-week high of $740.91. According to InvestingPro data, Meta maintains impressive gross profit margins of 82% and has delivered a 39% return over the past year. The firm cited a potential $6 billion incremental revenue opportunity from the introduction of advertisements on WhatsApp Status.

The bank estimates this represents a clear acceleration in Meta’s efforts to monetize user engagement on the WhatsApp platform. With current revenue of $170.36 billion and a healthy 19% growth rate, Wells Fargo’s forecast assumes advertisements on WhatsApp will eventually reach comparable cost-per-thousand impressions (CPMs) and ad load to those currently seen on Instagram.

Meta has emphasized that these new monetization features will only appear on the Updates tab, keeping them separate from users’ personal conversations. This approach aims to balance revenue generation with user experience.

The WhatsApp advertising initiative supports Wells Fargo’s product cycle-driven revenue outlook for Meta, which exceeds consensus estimates for 2026 and beyond. The firm views this development as a significant component of Meta’s future growth strategy.

Meta has been gradually expanding monetization across its family of apps, with WhatsApp representing one of its last major platforms with substantial untapped advertising potential. The company acquired WhatsApp in 2014 for approximately $19 billion. With an "GREAT" financial health score from InvestingPro, which offers 12 additional investment tips and a comprehensive Pro Research Report, Meta appears well-positioned to execute this strategic expansion.

In other recent news, Meta Platforms has announced plans to introduce advertising on WhatsApp, marking a significant shift in its approach to the messaging platform. The company will add ads to WhatsApp’s Updates tab, which is utilized by 1.5 billion users daily, and will include channel subscriptions and promoted channels. This development aims to open a new revenue stream for Meta, separating commercial features from private conversations. Additionally, Oppenheimer has raised its price target for Meta to $775, maintaining an Outperform rating due to an improved advertising environment. The research firm also adjusted its revenue estimates for fiscal years 2025 and 2026, reflecting growth projections. In another development, Meta has acquired a 49% stake in AI startup Scale AI for $14.8 billion, with Scale CEO Alexandr Wang set to join Meta. This acquisition will not affect OpenAI’s collaboration with Scale AI, as OpenAI plans to continue working with multiple vendors for data sourcing. Lastly, Scale AI is expected to name Jason Droege as its new CEO following Meta’s investment.

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