Breakfast News: Meta's Mega New Revenue Stream?
January 27, 2026
| Monday's Markets |
|---|
| S&P 500 6,950 (+0.5%) |
| Nasdaq 23,601 (+0.43%) |
| Dow 49,412 (+0.64%) |
| Bitcoin $87,688 (+1.05%) |
Source: Image created by Jester AI.
1. Meta Tests Paid AI Subscriptions
Meta Platforms (META +2.10%) is planning on trialing new subscription models across its apps in the coming months, giving paid users expanded features, as it looks to monetize the extensive AI work being carried out. The stock inched up marginally in pre-market trading.
- "Unlock more productivity and creativity": A Meta spokesperson said they would listen to the user community and gather feedback as the subscriptions get rolled out. It could include enhanced access to Vibes, Manus or Llama products.
- Paid models to help recoup some of the projected $70 billion 2025 AI spend: Back in October, Fool analyst Seth Jayson said "I believe Meta's AI spend is a combination of FOMO & hope that generative AI = more "content" = more time = more ad $," but made the point that "investors are wondering... will there ever be a return on the capex?"
2. Salesforce Inks Key U.S. Army Deal
Rule Breakers recommendation Salesforce (CRM +0.59%) confirmed it has signed a 10-year contract with the U.S. Army, for the provision of data and cloud technologies and other enterprise solutions, valued at $5.6 billion. The stock nudged up over 21% ahead of the opening bell.
- "Salesforce will bring the best of private sector innovation to support the Department of War, enabling a more efficient and effective force": The company statement outlined the "landmark agreement" would be executed through Computable Insights, a wholly owned subsidiary, which is dedicated to national security operations.
- New contract builds on current related projects: Salesforce has similar workflows with the Army Human Resources Command and Army Accessions Information Environment, highlighting the deepening ties it's developing with this client segment.
3. Medicare Insurers Fall on Proposed Rates
Healthcare stocks including Humana (HUM 1.08%) and CVS Health (CVS +1.04%) fell over 10% ahead of the market open after the U.S. government proposed a net average payment increase of just 0.09% for Medicare Advantage plans for 2027.
- Analysts expected a rate increase of between 4% to 6%: The payment plan had increased by 6% for this year, representing a $25 billion sum for healthcare insurers and providers. The lack of a similar move for 2027 represents a multi-billion dollar disappointment for related companies.
- Further evidence of a hardline stance on the sector: The Trump administration continues to push to limit cost increases on medical provisions ahead of key midterm elections in November.
4. Notable Tuesday Earnings to Watch
Recommended by Team Rule Breakers in Stock Advisor, HCA Healthcare (HCA +0.46%) releases results before the market opens, aiming to build on the strong previous quarter as it continues to expand facilities, with revenue this quarter expected to grow by 7.7% versus last year.
- Dividend yield of 6.11% versus 1.14% for the S&P 500: Dividend Investor rec UPS (UPS 0.94%) rose around 4% ahead of the opening bell thanks to quarterly earnings beating expectations, countering a disappointing showing last quarter, with management forecasting higher 2026 revenue.
- Proposed $85 billion merger going through regulatory scrutiny: Union Pacific (UNP +0.66%) posts quarterly earnings in pre-market trading. An update on the ongoing merger with Norfolk Southern (NSC +0.30%) should be due, along with plans to improve operational efficiency like last quarter.
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