Meta Platforms Shares Surge 10% on WhatsApp Ad Plans

Meta Platforms' shares experienced a notable gain in premarket trading on June 16, 2025, driven by several strategic announcements and positive market sentiment. The social media giant revealed plans to introduce advertising on WhatsApp, a move that is expected to significantly boost its revenue streams. This initiative is part of Meta's broader strategy to capitalize on the growing user base of its messaging platform, which has seen a steady increase in ad impressions and average price per ad.

WhatsApp, long known for its ad-free interface, will now begin showing ads in its Status section—its version of Instagram Stories. Users will start seeing these ads after viewing a few Status updates, with targeting based on non-personal data such as location and language preferences. Importantly, Meta emphasizes that private user data like phone numbers and messages won’t be used. This move signals a crucial evolution in WhatsApp’s revenue model. With over 1.5 billion people engaging with Status and Channels daily, Meta now has a substantial surface to serve ads and promote content. Additionally, it is enabling businesses and creators to monetize their Channels through subscriptions, offering another new revenue stream facilitated via app stores.

Meta's decision to invest $14.8 billion in Scale AI further underscores its commitment to technological innovation and data-driven decision-making. This investment is aimed at enhancing Meta's artificial intelligence capabilities, which are crucial for improving ad targeting and user engagement. The move is seen as a proactive step to stay ahead in the competitive tech landscape, where AI is becoming increasingly integral to business operations.

Investors also continue to cheer Meta’s push into AI and ad infrastructure, as recent earnings calls have highlighted. The WhatsApp ad expansion complements revenue from click-to-WhatsApp ads and the Business platform, both of which have shown steady growth. The rally came as investors digested the company’s growing commitment to monetizing key platforms like WhatsApp. With a trailing P/E of 26.66 and market cap of $1.717 trillion, Meta remains one of the strongest performers in its sector, boasting a 35.96% 1-year return.

Analysts have also noted that easing tariffs and a better ad outlook could further propel Meta's stock. This optimistic outlook is supported by Meta's recent financial performance, which has shown strong revenue growth driven by rising ad impressions and higher average prices per ad. The positive market sentiment is also reflected in the broader tech sector, with other major players also seeing gains. The overall market optimism is partly attributed to the easing of geopolitical tensions, which has reduced investor anxiety and encouraged risk-taking. This environment is conducive for tech stocks, which are often seen as high-growth investments.