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Barclays analysts believe that new advertising platforms on WhatsApp and Threads can enable Meta Platforms (NASDAQ: META) to add up to $25 billion to its annual revenues. The prognosis indicates the company's strategy to expand its advertising business through its messaging systems and advanced artificial intelligence systems.
Analysts estimate that WhatsApp will generate approximately $6 billion in ad revenue by 2026. Threads, introduced as a text-based platform, is expected to help generate up to $19 billion by 2027.
The WhatsApp status feature is used by over $1.5 billion daily users, which means a massive pool of people who can be subtly advertised to. The advantage of Threads in developed markets is the increased advertising, which contributes to its ability to achieve a greater advertising payoff.
Meta is also still incorporating AI technology like Andromeda and GEM to enhance the development of ad delivery and interaction. Such systems make targeting more fine, relevant, and efficient, providing the advertisers with improved returns on investment. The firm registered a 22% growth in revenue in the second quarter of 2025, which was partly aided by AI-based improvements in ads.
When applied to AI, it enables Meta to receive the most engagement across all platforms without creating an inconvenience for the user. These profits boost investors' confidence in Meta's ability to grow beyond the usual Facebook-Instagram advertisements. Although users still fear more advertising, there is already evidence that the technology has brought in positive efficiency effects.
Barclays estimates that a $25 billion increase in revenue might translate into an additional $9.5 billion in profits at Meta. At its present value, this could contribute up to $260 billion to the firm's market capitalization in the next few years.
According to a recent report by Graypoint LLC, several investment companies, including Graypoint, have recently increased their investment in Meta, indicating that institutional investors are confident in its long-term growth plan.
Meta's stock has performed well in 2025, with its market capitalization reaching $1.87 trillion. Analysts at companies such as Pivotal Research, Stifel Nicolaus, Morgan Stanley, and Oppenheimer raised their price targets, demonstrating confidence in its future growth in advertising.
Over the years, Meta has sought to monetize WhatsApp without compromising the user experience. The introduction of advertisements in WhatsApp Status and the gradual increase of Threads are significant in that respect. Combined with AI optimization, these changes indicate a shift in the focus of messaging apps as the primary component of Meta's ad-based business model.
Meta is investing in AI, data centers, and infrastructure to improve ad efficiency and scalability. Regulation and tough competition remain challenges, but the revenue growth represents a significant step forward for its ad business.
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