Meta Platforms ($META) Stock Tumbles as Ad-Free Subscription Hits UK Market Amid AI Strategy Talks

Meta's share price takes a hit as the social media giant rolls out its controversial ad-free subscription service across the UK—just as executives ramp up AI development discussions.

The Subscription Gambit

Users now face a choice: tolerate targeted ads or pay monthly for privacy. Meta's betting enough Brits will open their wallets to offset potential advertising revenue declines.

AI Ambitions Collide

Meanwhile, internal AI talks suggest Meta's scrambling to integrate artificial intelligence across its platforms. Because nothing says 'user experience' like more algorithms deciding what you see.

Market Reaction

Investors clearly aren't buying the vision—stock drops signal skepticism about Meta's ability to monetize both subscriptions and AI without alienating its core user base. Because when has chasing two revenue rabbits ever gone wrong for tech giants?

TLDR

• Meta stock closed at $748.91 on September 25, down 1.54%.
• UK users get ad-free Facebook and Instagram for £2.99 per month via web.
• Subscription responds to ICO privacy guidance after a landmark case.
• Meta in early talks with Google to use Gemini AI for ad targeting.
• META shares gained 28.21% YTD and 436.66% over three years.

Meta Platforms, Inc. (NASDAQ: META) stock closed at $748.91 on September 25, down 1.54%, before edging up 0.03% in pre-market trading.

Meta Platforms, Inc. (META)

The company announced that UK users will soon be able to subscribe to Facebook and Instagram without ads.

The service will cost £2.99 per month on web browsers and £3.99 via Apple’s iOS or Google’s Android systems. Meta highlighted that while users can still access free, ad-supported services, subscribers’ personal data will not be used for targeted advertising.

Meta will soon offer paid versions of Facebook and Instagram in the UK that will remove advertising from both platforms https://t.co/xJtv8BVMVL

— Bloomberg (@business) September 26, 2025

Regulatory Push

The MOVE follows guidance from the UK’s Information Commissioner’s Office (ICO), which recently supported a legal case involving human rights campaigner Tanya O’Carroll. She argued that Meta’s use of her personal data for targeted ads violated UK data protection law.

The ICO welcomed Meta’s new subscription as a way of giving users meaningful transparency and choice. It will now monitor the rollout to ensure consumers can make informed consent decisions. Meta emphasized the UK subscription price is “among the lowest in the market” and nearly half the cost of its EU counterpart.

AI Partnership Talks

Alongside the subscription news, Meta is reported to be in talks with Google’s cloud division about using Gemini, Alphabet’s AI model, to enhance its advertising business. Discussions are at an early stage and may not lead to a deal, according to the Information.

Employees have proposed fine-tuning Gemini and open-source Gemma models with Meta’s ad data to improve targeting. The move highlights challenges Meta faces in scaling its own AI, despite heavy investment in infrastructure and research.

JUST IN: $META is in talks with Google $GOOG to use its Gemini AI model for targeted ads. pic.twitter.com/HNZkH2dXW4

— LuxAlgo (@LuxAlgo) September 25, 2025

Meta has also considered partnerships with OpenAI to power conversational AI in its chatbot, Meta AI, and across its apps, including Instagram and WhatsApp.

Performance Overview

Meta stock has delivered strong returns in recent years. As of September 25, the company’s year-to-date gain stood at 28.21%, beating the S&P 500’s 12.29%. Over one year, META ROSE 32.19% versus the benchmark’s 15.42%.

Over three years, shares surged 436.66%, while the S&P gained 78.83%. Across five years, META climbed 195.71%, nearly doubling the index’s 100.24%.