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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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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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2 주 전
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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3 주 전
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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1 월 전
Meta shelves fact-checking in policy reversal ahead of Trump administration
By: Investing | January 7, 2025
(Reuters) -Social media company Meta Platforms (NASDAQ:META) on Tuesday scrapped its U.S. fact-checking program and reduced curbs on discussions around contentious topics such as immigration and gender identity, bowing to criticism from conservatives as President-elect Donald Trump prepares to take office for a second time.
The move is Meta's biggest overhaul of its approach to managing political content on its services in recent memory and comes as CEO Mark Zuckerberg has been signaling a desire to mend fences with the incoming administration.
The changes will affect Facebook, Instagram and Threads, three of the world's biggest social media platforms with more than 3 billion users globally.
Last week, Meta elevated Republican policy executive Joel Kaplan as global affairs head and on Monday announced it had elected Dana White, CEO of Ultimate Fighting Championship and a close friend of Trump, to its board.
"We've reached a point where it's just too many mistakes and too much censorship. It's time to get back to our roots around free expression," Zuckerberg said in a video.
He acknowledged the role of the recent U.S. elections in his thinking, saying they "feel like a cultural tipping point, towards once again prioritizing speech."
When asked about the changes at a press conference, Trump welcomed them. "They have come a long way - Meta. The man (Zuckerberg) was very impressive," he said.
Asked if he thought Zuckerberg was responding to his threats, which have included a pledge to imprison the CEO, Trump said "probably."
In place of a formal fact-checking program to address dubious claims posted on Meta's platforms, Zuckerberg instead plans to implement a system of "community notes" similar to that used on Elon Musk-owned social media platform X.
Meta also will stop proactively scanning for hate speech and other types of rule-breaking, reviewing such posts only in response to user reports, Zuckerberg said. It will focus its automated systems on removing "high-severity violations" like terrorism, child exploitation, scams and drugs.
The company will move teams overseeing the writing and review of content policies out of California to Texas and other U.S. locations, he added.
Meta has been working on the shift away from fact-checking for more than a year, a source familiar with the discussions told Reuters.
It has not shared relocation plans with employees, however, prompting confused posts on the app Blind, which provides a space for employees to share information anonymously.
Most of Meta's U.S. content moderation is already performed outside California, another source told Reuters.
Kaplan, who appeared on the "Fox & Friends" program on Tuesday morning to address the changes, offered Meta employees only a summary of his public statements in a post on the company's internal forum Workplace, which was seen by Reuters.
A Meta spokesperson declined to comment on planning for the changes or say which specific teams would be leaving California. The spokesperson also declined to cite examples of mistakes or bias on the part of fact-checkers.
CAUGHT BY SURPRISE
The demise of the fact-checking program, started in 2016, caught partner organizations by surprise.
"We've learned the news as everyone has today. It's a hard hit for the fact-checking community and journalism. We're assessing the situation," AFP said in a statement provided to Reuters.
The head of the International Fact-Checking Network, Angie Drobnic Holan, challenged Zuckerberg's characterization of its members as biased or censorious.
"Fact-checking journalism has never censored or removed posts; it's added information and context to controversial claims, and it's debunked hoax content and conspiracies," she said in a statement.
Kristin Roberts, Gannett Media's chief content officer, said "truth and facts serve everyone — not the right or the left — and that's what we will continue to deliver."
Other partners did not immediately respond to requests for comment, while Reuters declined to comment. Meta's independent Oversight Board welcomed the move.
Zuckerberg in recent months has expressed regret over certain content moderation actions on topics including COVID-19. Meta also donated $1 million to Trump's inaugural fund, in a departure from its past practice.
"This is a major step back for content moderation at a time when disinformation and harmful content are evolving faster than ever," said Ross Burley, co-founder of the nonprofit Centre for Information Resilience.
"This move seems more about political appeasement than smart policy."
For now, Meta is planning the changes only for the U.S. market, with no immediate plans to end its fact-checking program in places like the European Union which take a more active approach to regulation of tech companies, a spokesperson said.
Musk's X is already under European Commission investigation over issues including the "Community Notes" system.
The Commission began its probe in December 2023, several months after X launched the feature. A Commission spokesperson said it had taken note of Meta's announcement and was continuing to monitor the company's compliance in the EU.
The EU's Digital Services Act, which came into force in 2023, requires very large online platforms like X and Facebook to tackle illegal content and risks to public security.
Any firm found in breach faces a fine worth up to 6% of its global revenue.
Meta said it would start phasing in Community Notes in the U.S. over the next couple of months and improve the model over the year.
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Meta's AR Future
By: TrendSpider | December 26, 2024
Key Takeaways:
• Meta’s next-gen Ray-Ban glasses may feature built-in displays for notifications and AI responses.
• Expected in 2025, these updates signal Meta’s growing focus on AR technology.
• Google, Samsung, and Apple are emerging as key competitors in the smart glasses race.
Moving Toward AR Integration
META (Meta Platforms, Inc.) Ray-Ban Stories, launched in partnership with EssilorLuxottica, have become a standout success in the smart glasses market. Combining sleek design with features like AI-powered voice assistants, discreet cameras, and audio commands, the glasses have resonated with consumers since their 2023 refresh. Now, rumors suggest that the next iteration, expected in 2025, could include built-in displays, elevating the glasses from stylish tech accessories to functional AR devices.
The addition of a small display for notifications and AI responses would represent a significant leap from the current model, which lacks any visual interface. While these updates won’t rival the immersive AR experiences of devices like Apple’s Vision Pro, they move Meta closer to its vision of AR glasses as a dominant computing platform. By taking incremental steps, Meta aims to bridge the gap between wearable functionality and augmented reality innovation.
The Competitive Landscape
The timing of these updates is no accident. Meta is entering a crowded smart glasses market, with Google preparing its own glasses powered by the new Android XR operating system, set for release in 2025. Google’s rumored features, including displays similar to Meta’s upcoming model, could challenge Meta’s position in the wearable tech space. The competition doesn’t stop there—Samsung and Apple are also rumored to be developing smart glasses, signaling fierce competition ahead.
Meta’s strategy appears to focus on capturing the fashionable, lightweight wearable segment while refining AR capabilities behind the scenes. With the wearables market experiencing a 73% increase in shipments in 2024, there is no shortage of consumer interest. However, Meta’s success will hinge on balancing cutting-edge features like displays and AI integration with user-friendly design and accessible pricing. In a rapidly evolving space, maintaining the appeal of Ray-Ban Meta glasses will be crucial as the market grows more competitive.
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On December 3rd, $META made a new all-time high. Since then, CEO Mark Zuckerberg has cashed out $155,000,000 worth of shares
By: TrendSpider | December 12, 2024
• On December 3rd, $META made a new all-time high.
Since then, CEO Mark Zuckerberg has cashed out $155,000,000 worth of shares.
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