Meta Platforms (NASDAQ:META) announced that it is testing “Meta Verified,” a monthly subscription service. The move comes at a time when an increased number of social media companies are launching their paid subscription models to diversify revenue and reduce the dependency on advertising.
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Earlier, Elon Musk’s Twitter launched a subscription plan to monetize its platform. Further, Snap (NYSE:SNAP) has a similar kind of offering.
What Does Meta Verified Get You?
Meta Verified is a subscription bundle on Instagram and Facebook, said its CEO, Mark Zuckerberg. Meta is offering a verified badge through the bundle, confirming that the badge holder is real. This account verification also grants protection against impersonation.
Zuckerberg added that the service would provide exclusive features to creators and help them increase their visibility through search, recommendations, and comments.
Meta is offering the service, which will be launched in Australia and New Zealand this week, at $11.99/month to web users. Meanwhile, iOS and Android users will have to pay $14.99 as a monthly subscription fee. Meta plans to soon expand the service in other parts of the world.
Is META a Long-Term Stock?
How users react to Meta’s new subscription plan remains a wait-and-watch story. Meanwhile, increased competition could continue to pose challenges for META in the short term. On the bright side, analysts are bullish about META’s prospects.
META stock has 34 Buy, six Hold, and two Sell recommendations for a Strong Buy consensus rating. Further, analysts’ average price target of $215.20 implies 24.48% upside potential.
