Mark Zuckerberg is taking a page from Elon Musk and buying Meta stock. Bank of America says

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• Bank of America stated that Meta stock is worth buying as the company plans to launch a subscription model.
• In a Tuesday note, analysts wrote that the subscription service was "a potential high-margin business."
• The note stated that "We are intrigued" by the offering. It follows Twitter Blue and probably reflects the demand for more services from Facebook's creators.

Bank of America recommends taking advantage of Facebook's parent Meta's decision to offer a subscription model similar to Elon Musk’s move with Twitter Blue.

BofA analysts gave Meta stock a buy rating in a Tuesday note. They also set a $220 price target. This represents 26% upside over current levels.

CEO Mark Zuckerberg revealed a new paid subscription service called Meta Verified, which will provide verified badges for paying customers.

BofA stated that the subscription service is a "potential high margin business" and suggested that Meta could have as many as 12 million subscribers by 2024 when the product goes global.

The note stated that "We are intrigued" by the offering. It follows Twitter Blue and probably reflects the demand for more services from Facebook's creators.

Musk, the chief executive of Twitter launched Twitter Blue in November 2022 as a way to generate revenue. On Monday, he stated that it was "inevitable" that Meta would follow Twitter's lead and charge verified statuses

BofA estimates that Twitter's transition resulted in approximately 300,000 subscribers by the middle of January.

BofA stated that Meta's tests in Australia and New Zealand could help lay the foundation for a stock boost and a 3% increase in earnings-per-share.

The note stated that Meta could be more successful than peer subscriptions due to its wider audience reach and greater revenue potential for creators. "The service will likely continue to be improved and refined over time.

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By: bevans@insider.com (Brian Evans)
Title: Buy Meta stock as Mark Zuckerberg takes a page from Elon Musk’s playbook, Bank of America says
Sourced From: markets.businessinsider.com/news/stocks/buy-meta-stock-facebook-subscription-mark-zuckerberg-elon-musk-twitter-2023-2
Published Date: Tue, 21 Feb 2023 17:07:22 +0000

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