Whisper it to your teenage kids, but Meta Platforms (META) is set to crack down on the number of messages users are allowed to send on its WhatsApp chat platform.
Limits on Broadcast
According to a report in TechCrunch the move is being made to combat the amount of spam in users’ inboxes on the app rather than any attempt to curtail important messages between groups of friends or colleagues.
The plan is to limit the number of broadcast messages on the platform for both individual users and businesses. This is where users can create a saved list of contacts that they can repeatedly message rather than having to select a contact each and every time. They are particularly useful for members of a sports team, a retired people’s knitting club or a business.
Meta, in the next few weeks, will reportedly begin testing monthly limits on individual broadcast messages. This could be as much or as few – depending on how popular you are – as 30 messages per month. Meta said that if individual users want to send more messages to a large number of people, they could use Status updates or channels.
Business Messages Bonanza
It is also considering similar limits on broadcast messages such as product updates from business accounts. Until now, WhatsApp Business accounts have been able to send free and unlimited broadcast messages. However, Meta is expected to trial a scheme where merchants get 250 customized messages for free and then would have to pay for extra.
Meta will no doubt play this move carefully. WhatsApp business messaging is becoming increasingly important for the company. Today, analysts at Wolfe Research said Meta could generate between $30 and $40 billion a year from business messaging. That’s up from around $2 billion at present.
Is META a Good Stock to Buy Now?
On TipRanks, META has a Strong Buy consensus based on 44 Buy, 3 Hold and 1 Sell rating. Its highest price target is $935. META stock’s consensus price target is $764.60 implying an 32.26% upside.
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