After Meta announced on February 19 that it is testing a new subscription service on Facebook and Instagram, Meta Verified, BofA said the firm is "intrigued by this offering" and sees a 12M potential subscriber opportunity by the end of 2023 to early 2024. Though the firm notes some potential audience size limitations, it believes Meta could outperform the subscriber ramp as a percent of users of peer subscription offerings given a broader audience reach and bigger revenue opportunity for creators, the analyst tells investors. Noting that Meta "continues to take more aggressive action to grow earnings in the year of efficiencies," BofA keeps a Buy rating and $220 price target on Meta shares.
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