META's New WhatsApp Features to Drive Top-Line Growth: What's Ahead?

Meta Platforms’ META initiatives to launch new tools and features frequently across its app platforms have been helping it attract businesses. The social-media giant recently introduced new tools and features for Indian businesses to drive engagement. Small businesses can now offer a secure and convenient payment option (QR codes) directly within the WhatsApp Business app. Users can now call large businesses directly from the app with a single tap, or receive calls from businesses they have requested to hear from. 

Meta Platforms launched a feature in July that streamlined all marketing campaigns across WhatsApp, Facebook and Instagram in one centralized place, Ads Manager. The company is now offering this feature to Indian businesses. Businesses now can either select marketing messages as an additional placement or can use Advantage+, while Meta’s AI systems will then optimize budgets across placements to boost performance. Moreover, Meta Platforms is creating ways for businesses and creators to grow their presence in the WhatsApp Updates tab, which is currently used by 1.5 billion people daily. 

Business messaging and more engaging experiences are two of the five basic opportunities that Meta Platforms is pursuing to drive growth. In the second quarter of 2025, Family of Apps Other revenues jumped 50% year over year to $583 million, driven by WhatsApp paid messaging revenue growth as well as Meta Verified subscriptions. The company is using Llama to power Meta AI, an infusion of which into WhatsApp is driving user queries. AI push is helping Meta Platforms offer content that is interesting and useful, eventually driving engagement. Meta Platforms’ focus on enhancing safety for WhatsApp users is expected to further boost user engagement. 

These factors are expected to drive advertising revenues, Family of Apps Other revenues, and total revenues. Our model estimate for 2025 advertising revenues is currently pegged at $190.29 billion, indicating 18.5% growth over the figure reported in 2024. Family of Apps Other revenues are pegged at $2.30 billion, suggesting 33.7% growth from the figure reported in 2024. Our model estimate for 2025 total revenues is currently pegged at $194.66 billion, indicating 18.3% growth over the figure reported in 2024.

META Faces Tough Competition for Advertising Dollars

Meta Platforms is facing tough competition from Alphabet GOOGL and Amazon AMZN for advertising dollars.

Alphabet is leveraging AI to boost search dominance with the launch of Gemini 2.5. Search revenues are driven by improving engagement with features like AI Overview, which now has 2 billion users per month and is available in more than 40 languages across 200 countries. Alphabet is advancing visual and contextual search capabilities. The Circle to Search feature is now active on more than 300 million devices.

Amazon’s advertising business is noteworthy. Amazon’s ability to harness its vast retail media presence, proprietary shopping data and expanding connected TV (CTV) footprint is a key catalyst. The global rollout of Prime Video ads adds a high-value, premium channel that may lift revenues. Amazon’s ad ecosystem reaches over 300 million ad-supported users in the United States alone, spanning retail, Prime Video, Twitch and Fire TV.

META’s Share Price Performance, Valuation & Estimates

Meta Platforms shares have jumped 30.7% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 23.6% and the Zacks Internet Software industry’s appreciation of 25.3%.

META’s Price Performance

Meta Platforms is trading at a premium, with a forward 12-month price/sales of 8.81X compared with the broader sector’s 7.15X. META has a Value Score of D.

META Valuation

The Zacks Consensus Estimate for 2025 earnings is pegged at $28.14 per share, up by a penny over the past 30 days, suggesting 18% year-over-year growth.
 

Meta Platforms, Inc. Price and Consensus

Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote

Meta Platforms currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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