Investors discover new AI play
Meta shares have surged as investors pivot toward the company's AI initiatives, specifically the new 'Muse' personal assistant tool. Options trading volume has spiked significantly, reflecting strong market optimism regarding Meta's competitive position in the consumer AI space.
Why it matters
The shift in investor sentiment highlights the growing market influence of consumer-facing AI products and their impact on big tech stock valuations.
Options traders are treating Meta like it's the next big thing for the consumer artificial intelligence trade. Trading volume was about 4.5 times the 30-day average in Meta options Monday, with almost $3.9 billion in total premium exchanged according to Cboe LiveVol and SpotGamma data. More than twice as many calls were likely bought versus puts, and seven of the top 10 trades were either bullish or neutral. Shares of the social media giant surged 12% Monday to within 7% of the stock's all-time high in August 2025, adding to what's now a 21-percent rally since the company unveiled details of its personal assistant Muse. The company also announced plans to develop a subsea cable, called Petal, to send data across the Atlantic ocean. The most actively traded options contracts Monday were zero-day-to-expiry options with strikes that are now in the money, ranging from in-the-money 720 to 745-strike calls.
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