"Barclays analyst Ross Sandler sees Meta Platforms (META) as well poised for a boost in advertising revenue over the next two years, driven by its platforms, WhatsApp and Threads. The analyst projects that they can generate an additional $25 billion in revenue for Meta between 2026 and 2027. He reiterated a Buy rating on Meta stock with a price target of $810."
"Specifically, Sandler sees up to $6 billion in ad revenue from WhatsApp in 2026 and $19 billion from Threads in 2027. WhatsApp Status ads, in particular, could open up a huge amount of ad space, reaching over 1.5 billion daily users. However, Sandler noted that ad rates (CPMs) may be lower than those on other Meta surfaces due to geographic mix and limited targeting signals."
"Meanwhile, Threads, though smaller in scale, could earn higher revenue per user as its audience is concentrated in regions with stronger ad spending. The analyst also considered the potential for some pricing pressure in 2026 as the new ad inventory comes online. However, he believes Meta's advanced AI tools like Andromeda and GEM/Lattice will keep improving ad results and help drive more growth beyond current forecasts."
Up to $6 billion in ad revenue is projected from WhatsApp in 2026 and $19 billion from Threads in 2027, totaling $25 billion between 2026 and 2027. WhatsApp Status ads could reach over 1.5 billion daily users, though CPMs may be lower due to geographic mix and limited targeting signals. Threads' audience is concentrated in higher-ad-spending regions and may generate higher revenue per user. New ad inventory could create pricing pressure in 2026. Advanced AI tools such as Andromeda and GEM/Lattice are expected to improve ad results. AI assistant revenue is excluded from current valuation.
Read at TipRanks Financial
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