Meta Platforms (META, Financials) got a vote of confidence Wednesday as Baird raised its price target to $740 from $635, citing growing momentum in messaging revenue and deeper AI integration across its platforms.
The firm pointed to Meta's recent “Conversations” event as a turning point; the company unveiled new AI-powered features and expanded its Advantage+ advertising tools across WhatsApp and Messenger. Baird called the move a “key step” toward unlocking a large, under-monetized user base.
Click-to-message ads are pacing toward a $15–20 billion run rate, while WhatsApp ads could contribute another $10 billion over time, according to Baird's estimates. Subscriptions and business tools may tack on an additional $10 billion—pushing Meta's total messaging monetization opportunity to $40–50 billion by the end of the decade.
That runway translates to about $100 per share in added enterprise value, the firm noted.
Meta—currently trading near $719 with a $1.81 trillion market cap—has also rolled out centralized marketing tools and AI support for businesses using WhatsApp. Meanwhile, Chinese e-commerce platform Temu has resumed ad buys on Meta platforms, boosting ad inventory and engagement.
Still, risks remain. The European Commission has warned that Meta could face fines of up to 5% of daily revenue if its revised ad model fails to comply with the Digital Markets Act. Meta was previously fined EUR 200 million for its ad practices.
Even so, other firms like Cantor Fitzgerald remain bullish; the firm reaffirmed its Overweight rating, confident Meta can adapt without major disruption.
