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1 semana hace
Meta (META) Stock Rises with AI Future in Mind
By: Lucas Downey | February 7, 2025
• Meta Platforms Inc. (META) is a big-time player in social media, advertising, and now AI.
META is the world’s largest social media platform. Its products, including social media, media sharing, messaging, and more, are used by more than 3.3 billion people every day. Meta AI, the company’s AI assistant focused on personalization, is expected to reach over 1 billion users. And the company’s AI continued investments include a new 2-gigawatt data center.
Meta’s fourth-quarter earnings for fiscal 2024 showed strong revenue growth, despite the big capital expenses. Quarterly revenue hit $48.4 billion, a 21% year-over-year jump. And META’s guidance for next quarter’s revenue peaked at $41.8 billion. Its net income was $20.8 billion, or $8.20 per share. Lastly, the company is in a strong position for further investment, with nearly $78 billion on hand.
It’s no wonder META shares are up 22% already this year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.
Big Money Loves Meta Shares
Institutional volumes reveal plenty. In the last year, META has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in META shares. They reflect our proprietary inflow signal, pushing the stock higher:
Source: www.mapsignals.com
Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Meta.
Meta Fundamental Analysis
Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, META has had strong sales and earnings growth:
• 3-year sales growth rate (+12.2%)
• 3-year earnings growth rate (+33.2%)
Source: FactSet
Also, EPS is estimated to ramp higher this year by +13.7%.
Now it makes sense why the stock has been powering to new heights. META has a track record of strong financial performance.
Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.
Meta has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when META was a top pick…rising with Big Money support:
Source: www.mapsignals.com
Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
Meta Price Prediction
The META rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
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2 semanas hace
Trump Takeover Could Mean More Records for META
By: Schaeffer's Investment Research | February 4, 2025
• META grew roughly 78.3% between November 2020 and January 2016
• META has been highly coveted among options traders
Arguably one of the most prominent and striking images to come out of last Monday’s second presidential inauguration of Donald Trump, which took place inside the U.S. Capitol Rotunda in Washington, D.C., was that of three front row attendees: Elon Musk, Jeff Bezos, and Mark Zuckerberg -- the newly minted "broligarchs." All three Big Tech billionaires have been far from shy with their support -- though some more reluctant than others -- for the MAGA leader. With promises of tax cuts and free reign for venture capitalists, a Trumped-up U.S. could be ideal for the wealthy.
Early last week, I looked at Musk’s Tesla’s (TSLA) popularity in the options pits, and so thought it’d be interesting to dig into another "broligarch" name. With Meta Platforms (META) also appearing on Senior Quantitative Analyst Rocky White’s list of stocks with the highest options volume over the past two weeks, the choice was clear.
This week, all eyes were on Meta’s fourth-quarter earnings report, which came out after the close on Wednesday, Jan. 29. Handing out another positive earnings per share of $8.02 versus the estimated $6.77, META continued its streak of not posting an earnings miss since February 2023 -- making this report its eighth consecutive beat. In response, the equity gained 1.6% on Thursday, logging its fifth post-earnings pop over the past two years.
Meanwhile, The Wall Street Journal reported Trump signed a settlement agreement requiring Meta to pay around $25 million to resolve a 2021 lawsuit. Trump had filed the suit after the platform suspended his accounts on the heels of the Jan. 6 U.S. Capitol attack. Of that amount, $22 million is expected to go toward Trump’s presidential library, while the remainder will cover legal fees. Notably, Meta is not required to admit wrongdoing.
Unsurprisingly, META has been highly coveted among options traders, for what seems like forever. A consistent figure on White’s list of stocks with the highest options volume over the past 10 trading days, META saw over 3.1 million calls and 1.6 million puts traded. During this time frame, the January 650 call was the most popular contract, while the top open interest (OI) contract was the weekly 1/15 1,250-strike call. With earnings out of the way, options are looking like an affordable way to go. This is per Meta Platforms stock’s Schaeffer's Volatility Index (SVI) of 30%, which sits in the 14th percentile of its annual range.
Echoing this call-heavy sentiment, the equity’s 50-day call/put volume ratio of 2.01 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than all annual readings. Further, the security’s Schaeffer’s Volatility Scorecard (SVS) sits at a low 34 out of 100, making it a prime premium-selling candidate for those looking to cash in on these record highs.
Meta Platforms stock has been trending mostly higher since its pullback to $100 in November 2022, which also happened to be the site of its 2016 lows. At the time of this writing, the equity is trading at record highs -- less than two weeks after Trump was sworn into office, and amid more artificial intelligence (AI) growth plans from the Facebook founder himself. This recent surge has pushed the shares above the $625 level, a ceiling that capped a mid-December breakout attempt, with multi-month support stemming from an uptrend line that formed in late July. Conversely, the equity has broken out of a recent overhead trendline of resistance that formed in late 2024. META is up 75% year over year, fresh off 2024’s 12-month gain of 65.4%, and has only logged two yearly losses since its 2012 initial public offering (IPO) at $38.
During Trump’s first term, META grew roughly 78.3% between the November 2016 election and January 2020 inauguration of former President Joe Biden. Measuring from Thursday’s close of $687, should the metaverse leader match this growth over the next four years, it could be trading at an unprecedented $1,229.73 by 2029. Mind you, this is without taking into account any excess support from Trump policies that directly support a "hands off" approach in the billionaire-ran Big Tech sector. Last Friday, Zuckerberg also laid out plans for "investing in the years ahead," sharing that Meta plans to put $60 to $65 billion worth of capital into its AI infrastructure. In simpler terms, Big Tech traders should be eager to see exactly what another Trump takeover has in store for the broligarchs.
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2 semanas hace
Meta Platforms (META) Stock Eyes Record After Earnings, Settlement
By: Schaeffer's Investment Research | January 30, 2025
• Meta reported better-than-expected results for the fourth quarter
• President Trump signed a settlement requiring Meta to pay around $25 million
Meta Platforms Inc. (NASDAQ:META) stock is up 2.5% in premarket trading after the social media giant exceeded earnings and revenue expectations. The company reported fourth-quarter earnings of $8.02 per share on $48.39 billion in revenue, surpassing consensus estimates of $6.77 per share and $47.04 billion, according to LSEG.
Meanwhile, The Wall Street Journal reported President Donald Trump signed a settlement agreement requiring Meta to pay around $25 million to resolve a 2021 lawsuit he filed after the platform suspended his accounts on the heels of the Jan. 6 U.S. Capitol attack. Of that amount, $22 million will fund Trump’s presidential library, while the remainder will cover legal fees and other plaintiffs. Meta will not admit wrongdoing as part of the settlement.
Heading into today, META had already climbed 15.5% in 2025 and was up 69.1% year over year. If premarket gains hold, the stock will open at $693.70, surpassing its Jan. 28, all-time high of $674.33. This would also mark its ninth-straight daily win, putting it on track for a third consecutive monthly gain.
Following the updates, no less than 20 analysts hiked their price targets on Meta Platforms stock. BMO took it a step further, upgrading the security to "buy" from "hold."
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3 semanas hace
Meta leadership worried as Chinese AI DeepSeek sets new benchmark– The Information
By: Investing | January 26, 2025
Meta Platforms Inc (NASDAQ:META) is on high alert as DeepSeek, a conversational AI developed by a Chinese hedge fund, challenges its dominance in artificial intelligence, The Information reported on Sunday citing two Meta employees familiar with internal discussions.
Meta’s AI leaders, including infrastructure director Mathew Oldham, have expressed concerns that the upcoming version of Meta’s Llama AI may fall short compared to DeepSeek’s groundbreaking performance, the report stated.
DeepSeek has quickly gained attention for outperforming established AI systems like OpenAI’s GPT models and Meta’s Llama, while operating at a fraction of their costs.
Its development raises significant capital expenditure (capex) questions for AI companies investing heavily in expensive infrastructure to support their models.
Meta, like its competitors, has spent billions on AI advancements, including scaling computational resources and optimizing model training. However, DeepSeek’s ability to achieve similar or better results with lower costs has raised concerns about the sustainability of such heavy investments.
Smaller firms aiming to compete in the AI space may face further challenges, as DeepSeek sets a new standard for cost-effective innovation.
The competition underscores the shifting landscape of AI development, where performance is no longer the sole metric of success. Cost efficiency and accessibility are becoming increasingly critical, putting pressure on industry leaders like Meta, NVIDIA Corporation (NASDAQ:NVDA), Microsoft Corporation (NASDAQ:MSFT), Alphabet, (NASDAQ:GOOG) and other tech leaders.
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1 mes hace
Meta shares fall amid potential TikTok reprieve
By: Investing | January 15, 2025
Shares of Snap Inc . (NYSE:SNAP) and Meta Platforms Inc. (NASDAQ:META) declined 2.9% and 2% respectively, following news that President-elect Donald Trump may issue an executive order to temporarily halt the enforcement of a law requiring the sale or ban of TikTok. This move would delay the implementation of measures that could have benefited Snap and Meta by reducing competition in the social media space.
The Washington Post reported, citing anonymous sources, that Trump is considering a suspension of the TikTok sale-or-ban law for 60 to 90 days in hopes of securing an early victory in his second term. The law, signed by President Joe Biden, mandates that TikTok's owner, ByteDance, divest the app by January 19 or face a ban. The Supreme Court is expected to allow the law to proceed, but Trump's potential executive order could give the proceedings a "cinematic flourish."
Trump's interest in TikTok, as expressed on his TikTok account and other platforms, contrasts with his previous attempts to ban the app during his first presidential term. Instead, he now appears to be exploring various options to "save TikTok," which could include unconventional dealmaking or legal maneuvers.
The potential delay in enforcing the TikTok ban poses a threat to Snap and Meta, as TikTok remains a significant competitor in the social media sector. The uncertainty around TikTok's future in the U.S. market has led to investor concerns, contributing to the decline in Snap and Meta shares.
The broader implications of Trump's potential actions on TikTok's operations and ownership remain uncertain. While some of Trump's allies have suggested that he alone has the "consummate dealmaking expertise" to resolve the situation, legal experts have expressed skepticism about the effectiveness of an executive order in overcoming a law passed with bipartisan support.
As the social media landscape continues to evolve, the fate of TikTok in the U.S. will likely have ongoing repercussions for companies like Snap and Meta. Investors are closely monitoring the situation, as the outcome could significantly impact the competitive dynamics within the industry.
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