Aanchal Sugandh
4 min read
In This Article:
On June 16, Meta Platforms (META) made a move that could shift the tides of its monetization strategy by announcing it will introduce advertising on WhatsApp for the first time. This marks a crucial pivot for the messaging app, which has largely steered clear of ads since Meta acquired it in 2014 for $19 billion.
Ads will now appear in the Updates tab, a space already drawing 1.5 billion daily users. The company also unveiled three monetization tools, channel subscriptions for exclusive content, promoted channels to raise visibility, and ads in Status to give businesses a spotlight for their offerings.
All of this points to Meta’s intent to tap into WhatsApp’s massive scale and add fuel to its ad engine beyond Facebook and Instagram. On the back of this announcement, META stock jumped 2.8% and now trades just 6% below its 52-week high of $740.91, signaling investor confidence in the new direction.
Meta Platforms (META), a $1.75 trillion social media behemoth based in Menlo Park, California, has evolved from its Facebook origins into a vast digital empire. Meta now encompasses Facebook, Instagram, Threads, Messenger, and WhatsApp.
Over the past 52 weeks, META stock has rallied with a 39% jump. The upward trend has not lost steam in 2025 either, with the stock climbing another 19% year-to-date.
Currently, META trades at 27.6 times forward earnings and 10.7 times sales, both figures sitting above industry norms. The rich valuations reflect investors’ willingness to pay top dollar for Meta’s scale and potential.
On April 30, Meta stepped into the earnings spotlight and delivered a first-quarter 2025 performance that exceeded Street projections. The tech giant reported revenue of $42.3 billion for the first quarter of 2025, reflecting a 16.1% increase year over year and outstripping analyst projections of $41.2 billion.
The top-line growth was powered by the company’s advertising engine, which continued to hold its ground amid a shifting digital landscape. Ad impressions climbed 5%, and the average price per ad rose 10%, underscoring a healthy mix of volume and pricing strength. User engagement added another layer of confidence.
