Traders fall back in love with Meta. Here's where bulls see it going
Meta Platforms shares have surged as investors react positively to the company's AI computing initiatives and new coding product, Muse Spark 1.1. Options market activity shows strong bullish sentiment, though some traders are hedging against volatility.
Why it matters
Meta's pivot toward AI infrastructure is significantly impacting its market valuation and investor confidence.
Meta Platform's AI efforts are looking like the recipe for a comeback after an almost year-long drought in shares of the $1.7 trillion market-cap company. Shares of Mark Zuckerberg's social media giant jumped more than 6% Friday to the highest level since April, extending gains that began earlier this month when the company detailed plans to sell access to its AI computing capacity. On Thursday, the company launched Muse Spark 1.1, an AI coding product that will compete with Anthropic and OpenAI. Shares of Meta are flat on the year, while the tech-heavy Nasdaq-100 is up 18%. Options traders piled in on Friday, with volume on pace for more than three times the 30-day average and 78% of the stock's $1.8 billion in options premium tied to calls, according to data from Cboe LiveVol and SpotGamma.
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