Meta Platforms (META) is set to lead a market in revenue that can reach up to $40 billion, according to analysts at Wolfe Research. The analysts suggest that Meta’s business messaging opportunity could generate $30-40 billion in revenue. The firm believes this “modest near-term upside” could positively impact Meta’s FY25/26 Other-FOA revenue estimates.
Wolfe Research says that currently, WhatsApp’s business messaging generates only $1.5 to $2 billion annually, but Meta’s push to integrate AI agents into small businesses for customer service could significantly expand this. “We think it offers Meta a $30 – $40B revenue TAM,” said Wolfe Research, adding that the Facebook creator is uniquely positioned to capitalize on this market given the existing user base on WhatsApp’s platform.
Meta Has Plenty of Opportunities, Wolfe Says
Additionally, Wolfe Research believes that the medium-term opportunity is even more promising, with the analysts predicting “a high-single-digit to low-double-digit billion-dollar incremental revenue opportunity” in the coming years. This growth could increase Meta’s platform stickiness, making an investment into META stock much more promising as that market continues to expand.
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Meta getting a leg up in the business messaging market could be another driver for an already promising 2025. The tech giant is already working with Taiwan’s Taiwan Semiconductor Manufacturing Company (TSMC) to manufacture a new AI Chip. The company has started testing its first in-house chip for training its AI systems this month. Furthermore, 2ith its focus squarely on AI development, it is looking to be the leading developer for the sector that is expected to play a premiere role in all tech facets in the coming years. Meta executives say that they aim to use in-house chips by 2026 for both training and inference tasks.
META stock has been one of the biggest winners of the year so far. It had enjoyed a 20-week gaining streak that had the stock skyrocketing in value, especially compared to Mag-7 rivals. At press time, its stock is up 4% YTD, despite a slight 1% downtick in the last 24 hours.