Can Meta Platforms Grow Beyond Online Advertising?

"Meta Platforms ( NASDAQ:META) has been a one-trick pony for most of its existence. The company makes almost all of its revenue from online ads. While other tech giants have diversified beyond their original revenue source, Facebook's parent company still heavily relies on ads, but that may finally change. The tech company is starting to see early signs of success as it diversifies beyond ad revenue thanks to AI. These are some of the things investors should monitor as Meta Platforms seeks to produce big gains for investors after a relatively slow 2025."

"Meta Glasses take the concept of a smartphone and put it on your face. This device uses holograms to let people interact with videos, enter search prompts, and read translations in real time without staring down at a screen. The technology integrates with the real world, similar to the Pokemon Go phenomenon from several years ago. Users can essentially type in the air instead of looking down at their screen. This futuristic technology has unprecedented demand and can separate Meta Platforms from its reliance on smartphone makers like Apple ( NASDAQ:AAPL). Wait lists for Meta Glasses extend into 2026, and if it becomes an iconic product like the iPhone, it clearly paves the way for Meta Platforms to diversify beyond online ads."

"Although Meta Platforms has made a lot of money with the App Store and Google Play, there is one weakness in using those marketplaces. Meta Platforms has to pay a percentage of its revenue to Apple and Google when the clicks come from those apps."

Meta Platforms has historically depended on online advertising for nearly all revenue. AI initiatives are enabling early diversification beyond advertising. Meta Glasses put smartphone functionality into wearable holographic hardware that enables video interaction, air-typing, search prompts, and real-time translations while integrating with the physical world. Wait lists extend into 2026 and demand could make the glasses an iconic product that reduces dependence on smartphone makers. Strong glasses demand could provide a foundation for additional physical AI products. Meta currently pays a percentage of app-driven revenue to Apple and Google, and wearable hardware could alter that revenue-sharing dynamic.

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