Wedbush Analyst: Meta Stock Undervalues Future Subscription Revenue Potential

Key Facts

Amid a strategic shift among Big Tech firms to diversify revenue streams, a new bullish outlook has emerged for Meta's future. Dan Ives of Wedbush Securities stated that Meta's current stock price does not fully reflect its future revenue opportunities. According to reports, Ives suggested that the market is underestimating growth potential stemming from new subscription-based products and upcoming software earnings.

This optimism comes as Meta seeks to reduce its reliance on traditional advertising, a trend mirrored by peers like Alphabet, which reported strong growth in cloud and subscription services in the most recent quarter. Per market data, Meta's stock currently trades at multiples reflecting caution over Metaverse investments, but Ives believes upcoming catalysts from subscription models could shift this narrative (CNBC).

Looking at technical performance, META shares closed at robust levels recently, with traders monitoring momentum above key support levels. On the economic calendar, markets are awaiting the release of US Manufacturing and Services PMI data on May 21, 2026, which could impact risk appetite in the tech sector and influence the stock's short-term trajectory.