TLDR
- Meta rolls out ad-free Facebook and Instagram subscriptions in UK for £2.99-£3.99 monthly
- Company explores using Google’s Gemini AI models to enhance advertising performance
- Move addresses UK data protection concerns while preserving ad revenue streams
- Ad-free users won’t see targeted ads and data won’t be used for advertising
- Meta’s advertising business generated 98% of $164.5 billion revenue last year
Meta Platforms stock faces new developments as the company launches ad-free subscription options for UK users. The social media giant announced Friday that British Facebook and Instagram users can pay monthly fees to avoid advertisements.
The Meta stock news comes as the company expands its European subscription model to the UK market. Users can choose between £2.99 monthly for web access or £3.99 for mobile platforms.
The pricing structure reflects app store fees that Apple and Google charge developers. Higher mobile costs account for these additional platform charges.
UK regulators have pressured social media companies over data privacy practices. The country’s data protection authority raised concerns about personal information handling for targeted advertising.
Meta Stock Performance and Revenue Strategy
Meta stock investors watch closely as advertising revenue remains crucial for growth. The company’s ad business generated approximately 98% of total revenue last year, making subscription diversification important.
Users choosing paid subscriptions won’t see advertisements on their feeds. Their personal data also won’t be processed for advertising targeting purposes.
The ad-free tier gives users more control while preserving Meta’s free service model. The company maintains its ability to offer services funded by advertising revenue.
Google AI Partnership Discussions
Separate reports indicate Meta has held talks with Google Cloud about using Gemini AI models. These discussions could enhance the company’s advertising business performance.
Meta employees suggested fine-tuning Google’s Gemini and Gemma models using the company’s advertising data. This approach could improve ad targeting capabilities and advertiser returns.
The potential partnership highlights AI technology scaling challenges. Even companies investing heavily in research face difficulties developing competitive solutions independently.
Previous reports showed Meta considering partnerships with Google or OpenAI. These collaborations could enhance AI features including conversational responses for Meta’s chatbot.
Any Google partnership would benefit both companies. Meta could improve ad relevance using Gemini models while Google gains adoption across Meta’s user base.
The talks remain preliminary with no confirmed agreements. Sources indicate discussions may not result in final deals.
Wall Street maintains Strong Buy ratings on Meta stock. Analysts project an average price target of $873.88, suggesting 16.7% upside potential.
