Meta Platforms (META) saw its stock rise approximately 3.9% to $636.43 in late trading Wednesday, after the company began rolling out paid subscription tiers for its suite of social apps and artificial intelligence chatbot. The move gives investors a fresh narrative about revenue diversification, even as the company pours tens of billions into AI infrastructure.
According to a Bloomberg report, Meta is now offering two paid tiers for its Meta AI chatbot: Meta One Plus at $7.99 per month and Meta One Premium at $19.99 per month. This marks the first time the company has charged consumers directly for its AI assistant. Additionally, Barron's reported that Meta is introducing subscription plans for Facebook Plus, Instagram Plus, and WhatsApp Plus, which Naomi Gleit, Meta's head of product, described in an Instagram video as offering users “richer ways to express and connect.” A Meta spokesperson confirmed that the free version of Meta AI will remain available for everyday use.
Market Context
The stock's gain outpaced a largely flat broader market, with the Invesco QQQ Trust (QQQ) showing little change. Among ad-driven technology peers, Alphabet (GOOGL) and Snap (SNAP) also saw modest gains, but Meta’s late-session advance stood out. The rally reflects investor optimism that subscriptions could provide a steadier revenue stream and help offset the company’s massive capital expenditure on AI infrastructure.
Meta’s capital spending has been a key concern for shareholders. In its most recent earnings update, the company raised its 2026 capital expenditure forecast to $125 billion to $145 billion, up from a prior range of $115 billion to $135 billion. This spending is directed at building data centers, chips, and servers to support its AI ambitions. The higher forecast had initially triggered a more than 6% drop in the stock during extended trading, according to Reuters.
Financial Performance
Despite the heavy investment, Meta’s core advertising business remains robust. The company reported first-quarter revenue of $56.31 billion, a 33% increase year-over-year. Ad impressions across its family of apps rose 19%, while the number of daily active people using at least one Meta app reached 3.56 billion, up 4% from a year earlier, though slightly down from the previous quarter. CEO Mark Zuckerberg called the quarter a “milestone” and reiterated the company’s goal of delivering “personal superintelligence to billions of people.”
Competitive and Regulatory Landscape
Meta faces stiff competition from Alphabet, whose Google remains a benchmark for AI-driven search and advertising revenue. After Meta’s April results, D.A. Davidson analyst Gil Luria noted that Meta had failed to impress investors relative to Alphabet’s stronger performance. Meanwhile, Snap continues to explore ways to monetize its user base beyond advertising.
Governance and regulatory risks also loom. Meta held its annual meeting Wednesday, where shareholders voted on 10 proposals, including those related to child safety, generative AI chatbot data, and other platform risks. The company has warned that ongoing youth-safety scrutiny and potential U.S. trials could result in material losses.
Outlook
The sustainability of the stock’s rally hinges on whether the new subscription plans can generate meaningful revenue relative to Meta’s advertising business and its enormous capex. If user adoption falls short or the plans fail to offset AI spending, the stock could face renewed pressure. For now, however, investors appear to be buying into the idea that Meta has found another way to charge for AI, even if the bulk of its profits still comes from ads.
