Meta Stock Jumps Nearly 4% As It Rolls Out Premium Instagram, Facebook Plans
Meta is expanding paid subscriptions across its apps and AI offerings as the company sharply increases spending on artificial intelligence infrastructure.
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Meta is scaling up its paid subscription model across its platforms as it increases investment in artificial intelligence infrastructure and premium digital services.
Multiple reports state that users will get offers for subscriptions of Instagram Plus and Facebook Plus at $3.99 per month and WhatsApp Plus at $2.99 per month.
The subscriptions are being rolled out as part of Meta’s wider monetization and AI-focused strategy, Forbes reported.
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Premium AI Features:
Subscribers of Instagram Plus and Facebook Plus will get premium profile customisation tools, Story insights and other engagement features.
According to reports, more premium features are expected to be added over time, said Naomi Gleit.
Meta also is launching AI-centric subscription plans associated with its AI products.
The company will be working on Meta One Plus, which will cost $7.99 a month, and Meta One Premium, which will cost $19.99 a month.
The AI subscriptions will offer users higher usage limits and access to more advanced AI assistant capabilities, including support for more complex tasks.
Also Read: Meta Launches Paid Subscription Plans For Instagram, Facebook And WhatsApp
Meta’s AI Push:
Meta Verified, the company’s existing subscription service for profile verification and impersonation protection, will still be available and won’t be affected by the new offerings.
The sentiment around the subscriptions seemed positive, with Meta shares rising 3.7 percent to end the day at $635.36 amid reports of the rollout.
But the company’s stock is still down 6.6 percent over the past month.
The subscription expansion comes with Meta spending much more on artificial intelligence infrastructure and product development.
The company recently increased its capital expenditure guidance for the year to between $125 billion and $145 billion, up $10 billion from previous guidance and almost double its 2025 guidance.
Several technology companies including Microsoft, Amazon and Alphabet have also significantly stepped up AI-related investment amid mounting competition in the generative AI space.
Meta's stock has continued its poor showing this year, with shares down almost 4 percent since January.
The company had earlier blamed internet disruptions in Iran for a drop in users in the first quarter.
Meta said quarterly revenue was $56.3 billion, up 33 percent from a year ago, as it reshapes parts of its workforce to focus on artificial intelligence.
The company has laid off around 8,000 employees and recently reassigned approximately 7,000 staff members to focus on AI-related projects.
