Key Takeaways:
Meta Platforms shares surged 3.7% to $635.36 after the company unveiled paid subscription plans for its social media apps and artificial intelligence chatbot, marking its first major push to diversify beyond advertising revenue.
"We're offering premium tools that allow you to enhance presence, supercharge content, automate tasks, and protect your brand," Naomi Gleit, head of product at Meta, said in an Instagram video announcing the plans.
Facebook Plus and Instagram Plus will cost $3.99 per month, unlocking features including better analytics, story rewatch statistics, wider audience reach and profile customization. WhatsApp Plus, priced at $2.99 per month, focuses on personalization with premium stickers, custom ringtones and app themes. For AI, Meta One Plus costs $7.99 a month and Meta One Premium costs $19.99 a month, offering additional computing capacity for more comprehensive responses.
The subscription rollout comes as Meta faces investor scrutiny over its massive artificial intelligence spending. The company has projected capital expenditure of $125 billion to $145 billion for the year, mainly for AI data centers. Gleit said Meta intends to eventually consolidate its various offerings under a single brand called Meta One. The company will begin testing its Meta AI subscription plans next month in Singapore, Guatemala and Bolivia, while continuing to offer a free version of the app and website. Meta's stock, which had fallen 6.6% in the prior month, rose nearly 3% on the news Wednesday.
This article is for informational purposes only and does not constitute investment advice.
