Meta Platforms (NASDAQ:META | META Price Prediction) has been a one-trick pony for most of its existence. The company makes almost all of its revenue from online ads. While other tech giants have diversified beyond their original revenue source, Facebook’s parent company still heavily relies on ads, but that may finally change.
The tech company is starting to see early signs of success as it diversifies beyond ad revenue thanks to AI. These are some of the things investors should monitor as Meta Platforms seeks to produce big gains for investors after a relatively slow 2025.
Meta Glasses Reached Unprecedented Demand
Meta Glasses take the concept of a smartphone and put it on your face. This device uses holograms to let people interact with videos, enter search prompts, and read translations in real time without staring down at a screen. The technology integrates with the real world, similar to the Pokemon Go phenomenon from several years ago.
Users can essentially type in the air instead of looking down at their screen. This futuristic technology has unprecedented demand and can separate Meta Platforms from its reliance on smartphone makers like Apple (NASDAQ:AAPL). Wait lists for Meta Glasses extend into 2026, and if it becomes an iconic product like the iPhone, it clearly paves the way for Meta Platforms to diversify beyond online ads.
Meta Platforms may create additional physical AI products and use Meta Glasses as the first stepping stone toward a wide range of products. If the demand for Meta Glasses accelerates in 2026 and beyond, it will give the company a strong foundation to create similar products that are met with the same type of demand.
Meta Glasses Can Boost Ad Margins
Although Meta Platforms has made a lot of money with the App Store and Google Play, there is one weakness in using those marketplaces. Meta Platforms has to pay a percentage of its revenue to Apple and Google when the clicks come from those apps.
Meta Glasses can change that model completely by giving Facebook’s parent company its own marketplace, like the App Store. In theory, people who use Meta Platforms’ family of apps with their Meta Glasses can see online ads. Each of those clicks translates into 100% profits for Meta Platforms. They wouldn’t have to pay a 30% fee on ad revenue generated from Meta Glasses.
Higher margins can make the stock more desirable, especially since it didn’t deliver exceptional gains in 2025.
The Online Ad Revenue Business Is Still Thriving
Meta Platforms’ diversification into new businesses is a welcome development, but its online advertising business is still thriving. The company reported 26% year-over-year revenue growth in Q3 2025 while reaching 3.54 billion daily active users across its platforms. Meta Platforms’ user base increased by 8% year-over-year.
The company’s ad business offers a significant capital engine to invest in AI opportunities. While some investors aren’t happy with rising capital expenditures, Meta Platforms can turn off the faucet at anytime. Delaying AI investments when the technology is new and has massive potential doesn’t make sense right now. However, it’s possible for AI Glasses and other AI products to become profitable growth engines that produce meaningful long-term gains for investors.
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