According to Wolfe Research, WhatsApp is finally waking up after a long slumber.
Wolfe believes that business messaging via WhatsApp will be a significant driver for Meta’s future growth in the next few years.
The investment firm said in a note to clients today that revenue from this service could rise from $1.5 billion when written down, up to $7.3 million by the decade’s end.
Meta stock lost almost 18% over the past few weeks, largely due to the recent rout of US tech stocks.
A large enough audience for business messaging
Wolfe predicts that the business messaging market will be worth more than $40 billion in 2040.
In their report, Meta’s analysts argue that as the market expands in coming years, Meta is likely to capture a larger share than its current single-digit percentage.
They believe that Meta’s share of the business messaging market could reach nearly 17% by 2030.
The TikTok Ban will also benefit Meta Stock.
Meta Stock to Reach $730 with WhatsApp
The investment firm stated in its note that Meta’s shares may benefit if the company follows through on its promise to introduce AI agents also for small business.
Analysts remain optimistic, as WhatsApp has an advantage in this area: WhatsApp caters to many businesses around the world. This means that there is a great opportunity to monetize existing customers.
Wolfe Research rates Meta Platforms as “outperform”. It sees its stock rising to $730 in the early part of next year, which is a potential increase over 20%.
META pays an additional dividend of 0.35 % at the time this article was written, making it even more attractive to buy in 2025.
Wolfe’s opinion on Meta’s new app, ‘Threads.’
Analysts at Wolfe recommend that you buy Meta shares as they believe “Threads”, which is currently only in the initial stages of monetisation, has a bright future.
Meta released this platform to compete with “X”, which Elon Musk, a billionaire Elon Musk purchased for $44 billion.
Jeff Marks is the director of Portfolio Analysis at Jim Cramer’s Investing Club. He said that Meta Platforms had two verticals untapped, which if monetised successfully, could provide an incremental revenue boost.
There are currently 320,000,000 monthly active Threads users.
Mark Zuckerberg, the CEO of the company on its latest earnings call said that Threads would “continue its trajectory and become the most popular discussion platform in the future.”
The post WhatsApp Could be Meta’s largest growth driver by 2025 will be updated as new information becomes available.
