Wolfe Research suggested that Meta Platforms Inc. META has the potential to generate a staggering $30-40 billion in revenue from its business messaging services, a prospect currently undervalued by the market.

What Happened: Analysts at Wolfe Research anticipate a “modest near-term upside” that could positively influence Meta’s FY25/26 Other-FOA revenue predictions, according to a report by Investing.com.

At present, WhatsApp’s business messaging contributes a mere $1.5 to $2 billion annually. However, Meta’s plan to integrate AI agents into small businesses for customer service could significantly increase this revenue.

Wolfe Research stated, “We think it offers Meta a $30 – $40B revenue TAM.” The firm also highlighted that Meta is uniquely positioned to tap into this market due to WhatsApp’s existing user base.

These estimates take into account automation adoption, the total addressable market for customer service, and the number of businesses already operating on WhatsApp. They forecast that as automation progresses to manage more complex inquiries, “business messaging could accelerate,” particularly in key markets such as India, Indonesia, and Brazil.

Wolfe Research also foresees a promising medium-term opportunity, projecting “a high-single-digit to low-double-digit billion-dollar incremental revenue opportunity” in the next few years. This expansion could strengthen Meta’s platform engagement, particularly among businesses that rely on WhatsApp for customer interactions.

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Why It Matters: This prediction comes at a time when Meta’s global expansion efforts are under intense scrutiny, following serious allegations from former executive Sarah Wynn-Williams.

In her memoir “Careless People” and a whistleblower complaint filed with the SEC, Wynn-Williams accused Meta and CEO Mark Zuckerberg of taking extreme steps to penetrate the Chinese market while simultaneously engaging in controversial lobbying tactics in India.

These concerns arise at a crucial moment as Meta revises its policies in response to shifting political dynamics, while Zuckerberg positions the company as a key force in American tech diplomacy. Last Week President Donald Trump also indicated that Meta Platforms could invest up to $ 60 billion into the U.S. by the end of 2025.

The potential revenue from business messaging boost could be a game-changer for Meta, especially if it successfully navigates the regulatory challenges it currently faces.

Meta platform stock climbed 12.45% over the past six months.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.