Meta stock has substantial upside to $1,800 due to AI commerce revenue and ad integration exceeding consensus growth expectations.

So, we already know that Meta has, in my opinion, a lot of upside potential. Once you take the Wall Street numbers and apply a very basic multiple to Meta, this stock still has a 43% upside potential.

Firstly, my price target for Meta is actually much higher than this. I believe Meta's growth will be much higher , and therefore my expectations for Meta's stock are closer to $1,800, which means it could more than double from here.

But Meta became very, very cheap , especially when it was hovering around the $566 level , based on spending levels and the revenue the company was generating from advertising expenditure.

So, what do we have with Meta? Well, what's great about Meta is that Deutsche Bank has just released this analysis, and they argue that "the massive wave of downloads is still going strong on the Meta Muse app."

We conducted a survey, and the app still holds the number one spot in the app store.

I personally downloaded the Muse app, yet their ads still appear on the store, which I find rather funny. This might be a strategy to increase the number of times you open the app and increase your usage rate.

Therefore, my thesis is that Google or Meta will end up taking base points as a kind of commission. But Deutsche Bank has a different point of view. They actually believe that Meta may take between 3 and 5% as a commission.

That could amount to $270 billion in potential revenue.

Deutsche Bank argues that the cut rates from trade based on smart agents could essentially generate $270 billion in additional funds. This does not mean that Meta will get all of this, but you are essentially saying that an entire additional Meta business through AI-driven commerce cutoffs is available to snag.

They believe that Meta will take about 8 to 18% of that.

I think it could be even more than that, given that Meta has three billion daily active users .

In fact, I think there is a bigger issue that they haven't written much about, which is the extent to which this will affect Meta's revenue, which they expect to exceed consensus estimates.

These are the consensus figures for 2030, which amount to $466 billion . They believe that transaction fees and spreads alone could add another $36 billion to Meta's revenue by 2030.

I think that estimate is low. This is mainly because we have not yet addressed how to integrate advertising into this system. So, I think that a company that pays money to be included in those suggestions, such as furniture sections, where you choose from three options and one of them is a sponsored ad.

Who cares if it says "funded" on it? If you say : "Yes, I still like the style of that sponsored product." You will press it . This could double the fees that an advertising platform like "Meta" can earn .

In addition, they argue that their current cost per user to run MetaMuse ranges from $3.50 to $6.50. Therefore, they currently estimate that the cost for free users on "Meta" is about five dollars per month, for premium users $35, and for the "Max" category $165.

Anyway, getting back to DBP here, this is very exciting for Meta because I think all of these things help Meta with its growth potential.

Currently, this company's growth potential is listed at, well, we now have a price-to-earnings ratio of 35, and sorry, 35.05 is the year-end earnings per share according to the current consensus.

Then growth after that, they only have a consensus growth of 9.5 in the next year, 21.6, 18.6, and 13.4, which is about 15.67 as an average growth over four years.

So, if you take the Meta price at 745 today, that equates to it trading at around 21.23 times or a PEG ratio of 1.3. I personally believe this could easily double. Because that would put you at a PEG ratio of around 2.6, and I actually think their growth rate would be higher.

So , if I take a higher growth rate , say 20%, and multiply it by a PEG ratio closer to 2.6, I will reach my price target of $1822 for Meta.