Meta Platforms could generate more than $26 billion in incremental revenue by 2027 from new AI products, subscriptions, and advertising initiatives, according to a Wolfe Research report.
Wolfe said investor concerns around Meta’s rising capital expenditures, negative free cash flow, and uncertainty over returns from its AI investments have weighed on sentiment.
The firm said it expects Meta’s 2027 revenue growth to reach 22%, above the 19% growth forecast by Wall Street.
The report estimates Meta could generate more than $6 billion in incremental non-advertising revenue by 2027, led by Business AI, subscriptions, and agentic commerce initiatives.
Business AI alone could contribute roughly $5 billion, supported by growing adoption of business messaging services across markets including India, Indonesia, Brazil, and Mexico.
Subscription products tied to Instagram and Meta AI could add about $1 billion, while agentic commerce initiatives could contribute more than $300 million.
On the advertising side, Wolfe sees more than $20 billion in additional revenue opportunities by 2027.
The firm expects Meta’s AI-powered advertising systems, including Muse Spark, Andromeda, GEM, and Lattice, to contribute over $10 billion in incremental revenue through improved ad targeting and conversion rates.
The report also forecasts Threads’ advertising revenue reaching about $4 billion in 2027, up from an estimated $2.3 billion in 2026.
WhatsApp advertising could contribute about $2 billion, while Click-to-Message advertising revenue is projected to reach approximately $26 billion, representing an increase of about $4 billion from 2026 levels.
Wolfe also raised its capital expenditure outlook for Meta, projecting spending of roughly $200 billion in 2027, compared with a Wall Street consensus estimate of about $158 billion.
The firm’s forecast includes approximately $120 billion in GPU and CPU-related spending, alongside investments in networking, energy infrastructure, and data centers.
The report estimates Meta’s computing capacity could rise to about 15 gigawatts in 2027, up from roughly 10 gigawatts in 2026, as the company expands infrastructure to support its growing AI ambitions.
