Meta, Amazon, Palantir Fuel AI Data Center Boom — ETFs Are The Sleeper Bet
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 17 2025
0mins
Source: Benzinga
AI's Impact on Power Demand: Major tech companies are investing heavily in AI, leading to a projected 165% increase in global data center electricity demand by 2030, prompting investors to consider power generation and infrastructure-related ETFs.
Investment Opportunities in Infrastructure: As the demand for data centers rises, ETFs focused on utilities, infrastructure, and digital real estate are becoming increasingly relevant, with companies like Meta planning significant expansions that will drive growth across various sectors.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 632.510
Low
655.15
Averages
824.71
High
1117
Current: 632.510
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Diversification Strategy: Meta has announced plans to reduce its reliance on ad revenue by launching subscription services like WhatsApp Plus, Instagram Plus, and Facebook Plus, with expected monthly fees of a few dollars appealing to heavy users, thereby opening new revenue streams for the company.
- Opportunities for Content Creators: The new subscription services will provide content creators and marketers with enhanced features and customization options, similar to paid plans on X, enabling them to create more engaging posts and expand their audience, further enhancing Meta's advertising appeal.
- AI Subscription Testing: Meta is testing a Meta One Plus subscription at $7.99 per month and a premium version at $19.99, aiming to leverage its user data to offer personalized advice and compete with other chatbots, thus creating new revenue streams in the AI sector.
- Stock Investment Appeal: Despite a 7% drop in Meta's stock at the start of 2026, its price-to-earnings ratio of 23 is lower than the S&P 500's 26, and combined with potential subscription growth opportunities, long-term investors may find the stock attractive, with expectations of billions in new revenue in the future.
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META Stock Down 9% Year-to-Date Amid Challenges
- Layoff Impact: Last month, META announced layoffs affecting about 10% of its workforce, approximately 8,000 employees, contributing to a 9% year-to-date stock decline, reflecting the company's need to adjust strategies amid competitive pressures.
- Market Sentiment Fluctuation: Despite a 5.1% drop on Monday, retail investor sentiment on Stocktwits rose from 'bullish' to 'extremely bullish', indicating confidence in META's future potential despite current challenges.
- Analyst Ratings Optimistic: According to Koyfin data, 57 out of 64 analysts covering META have a 'Buy' or higher rating, with an average price target of $826.75, suggesting a 38% upside from the current stock price, highlighting market recognition of its long-term value.
- Subscription Service Launch: META recently introduced subscription offerings for Instagram, Facebook, and WhatsApp, priced at $3.99 and $2.99 per month respectively, aiming to enhance financial stability through new revenue streams, despite the current stock performance issues.
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- IPO Plans: SpaceX filed its S-1 registration statement with the SEC on May 20, aiming for a June 12 IPO at a $1.75 trillion valuation, despite reporting a $2.59 billion net loss in 2025, indicating a lack of profitability.
- Market Share and Competitive Edge: By the end of 2025, SpaceX operated approximately 9,600 Starlink satellites serving millions of customers, maintaining a dominant position in the commercial space launch industry, although its revenue of $18.67 billion is significantly lower than its valuation.
- Impact of New Nasdaq Rules: Nasdaq plans to include SpaceX in the Nasdaq-100 index shortly after its IPO, with new rules allowing large companies to enter the index quickly, positioning SpaceX as the seventh-largest company and potentially increasing market volatility.
- Investment Strategy Recommendation: Given the high valuation and potential volatility of SpaceX's IPO, investors are advised to consider low-cost S&P 500 index funds to mitigate risk and achieve stable returns, especially as insider selling increases the float significantly.
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SpaceX to Go Public on June 12 with $1.75 Trillion Valuation
- IPO Plans: SpaceX is set to go public on June 12 with a projected valuation of $1.75 trillion, despite only generating $18.67 billion in revenue in 2025 and reporting a net loss of $2.59 billion, highlighting the impact of its substantial R&D expenditures on profitability.
- Nasdaq Listing Details: The company will list under the ticker SPCX on Nasdaq, and due to its market size, it is expected to be included in the S&P 500 index within weeks of its IPO, reflecting the expedited inclusion rules for mega-cap companies.
- Market Impact Analysis: The addition of SpaceX will position it as the seventh-largest company in the S&P 500, potentially increasing the index's volatility, especially as tech stocks already account for 51% of the index, which may influence investor risk assessments and strategies.
- Investment Strategy Recommendation: Given SpaceX's high valuation and potential volatility, investors are advised to consider low-cost S&P 500 index funds to mitigate risk while capturing future high-return opportunities, particularly in the context of ongoing growth in technology and artificial intelligence sectors.
See More
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- Market Performance Review: On Monday, all three major U.S. indexes closed higher, with the Nasdaq rising 0.42%, the Dow Jones up 0.09%, and the S&P 500 gaining for the eighth consecutive day, indicating strong demand for tech stocks, particularly driven by Nvidia's performance.
- Futures Market Volatility: In overnight trading on Monday, U.S. stock futures declined, with Dow futures falling 0.46%, S&P 500 futures down 0.41%, and Nasdaq 100 futures dropping 0.63%, reflecting market uncertainty over the Middle East situation, especially the escalating conflict between Israel and Lebanon.
- Oil Prices Edge Up: During Monday's trading, Brent crude futures rose about 0.13%, trading at approximately $95.10 per barrel, while WTI crude futures increased by 0.05%, indicating ongoing market attention to energy demand despite an overall cautious sentiment.
- Tech Stock Dynamics: Nvidia's shares surged over 6% on Monday after CEO Jensen Huang unveiled new products at a conference in Taipei, highlighting the company's ongoing innovation in AI workloads for data centers, further solidifying its leadership position in the tech industry.
See More
Apple's WWDC to Determine AI Winner Status
- Low Investor Expectations: Morgan Stanley highlights that low investor expectations create a favorable setup for Apple to reshape its narrative at the upcoming WWDC, potentially redefining its status in artificial intelligence and pushing valuations to $365-$385, with an upside target of $440.
- Dependence on iPhone Sales: iPhone sales account for nearly 55% of Apple's total revenue, while services like iCloud and the App Store contribute about 25%, making the company's performance in AI particularly critical against the backdrop of advancing competitors.
- Future Revenue Outlook: Morgan Stanley anticipates that Apple could experience a performance boost similar to the 20-point increase seen after WWDC 2024, should its AI platform and vision gain recognition, potentially attracting more investor interest.
- New Service Launch: Apple plans to introduce a new bill-splitting service at WWDC, aiming to expand its influence in everyday financial tools, while also targeting the launch of its first smart glasses in late 2027, further diversifying its product line.
See More
Meta Plans Subscription Services to Diversify Revenue Streams
- Revenue Diversification Strategy: Meta has announced plans to reduce its reliance on ad revenue by launching subscription services like WhatsApp Plus, Instagram Plus, and Facebook Plus, with expected monthly fees of a few dollars appealing to heavy users, thereby opening new revenue streams for the company.
- Opportunities for Content Creators: The new subscription services will provide content creators and marketers with enhanced features and customization options, similar to paid plans on X, enabling them to create more engaging posts and expand their audience, further enhancing Meta's advertising appeal.
- AI Subscription Testing: Meta is testing a Meta One Plus subscription at $7.99 per month and a premium version at $19.99, aiming to leverage its user data to offer personalized advice and compete with other chatbots, thus creating new revenue streams in the AI sector.
- Stock Investment Appeal: Despite a 7% drop in Meta's stock at the start of 2026, its price-to-earnings ratio of 23 is lower than the S&P 500's 26, and combined with potential subscription growth opportunities, long-term investors may find the stock attractive, with expectations of billions in new revenue in the future.
See More
META Stock Down 9% Year-to-Date Amid Challenges
- Layoff Impact: Last month, META announced layoffs affecting about 10% of its workforce, approximately 8,000 employees, contributing to a 9% year-to-date stock decline, reflecting the company's need to adjust strategies amid competitive pressures.
- Market Sentiment Fluctuation: Despite a 5.1% drop on Monday, retail investor sentiment on Stocktwits rose from 'bullish' to 'extremely bullish', indicating confidence in META's future potential despite current challenges.
- Analyst Ratings Optimistic: According to Koyfin data, 57 out of 64 analysts covering META have a 'Buy' or higher rating, with an average price target of $826.75, suggesting a 38% upside from the current stock price, highlighting market recognition of its long-term value.
- Subscription Service Launch: META recently introduced subscription offerings for Instagram, Facebook, and WhatsApp, priced at $3.99 and $2.99 per month respectively, aiming to enhance financial stability through new revenue streams, despite the current stock performance issues.
See More
Analysis of SpaceX IPO Prospects and Market Impact
- IPO Plans: SpaceX filed its S-1 registration statement with the SEC on May 20, aiming for a June 12 IPO at a $1.75 trillion valuation, despite reporting a $2.59 billion net loss in 2025, indicating a lack of profitability.
- Market Share and Competitive Edge: By the end of 2025, SpaceX operated approximately 9,600 Starlink satellites serving millions of customers, maintaining a dominant position in the commercial space launch industry, although its revenue of $18.67 billion is significantly lower than its valuation.
- Impact of New Nasdaq Rules: Nasdaq plans to include SpaceX in the Nasdaq-100 index shortly after its IPO, with new rules allowing large companies to enter the index quickly, positioning SpaceX as the seventh-largest company and potentially increasing market volatility.
- Investment Strategy Recommendation: Given the high valuation and potential volatility of SpaceX's IPO, investors are advised to consider low-cost S&P 500 index funds to mitigate risk and achieve stable returns, especially as insider selling increases the float significantly.
See More
SpaceX to Go Public on June 12 with $1.75 Trillion Valuation
- IPO Plans: SpaceX is set to go public on June 12 with a projected valuation of $1.75 trillion, despite only generating $18.67 billion in revenue in 2025 and reporting a net loss of $2.59 billion, highlighting the impact of its substantial R&D expenditures on profitability.
- Nasdaq Listing Details: The company will list under the ticker SPCX on Nasdaq, and due to its market size, it is expected to be included in the S&P 500 index within weeks of its IPO, reflecting the expedited inclusion rules for mega-cap companies.
- Market Impact Analysis: The addition of SpaceX will position it as the seventh-largest company in the S&P 500, potentially increasing the index's volatility, especially as tech stocks already account for 51% of the index, which may influence investor risk assessments and strategies.
- Investment Strategy Recommendation: Given SpaceX's high valuation and potential volatility, investors are advised to consider low-cost S&P 500 index funds to mitigate risk while capturing future high-return opportunities, particularly in the context of ongoing growth in technology and artificial intelligence sectors.
See More
U.S. Stock Futures Decline Amid Political Uncertainty
- Market Performance Review: On Monday, all three major U.S. indexes closed higher, with the Nasdaq rising 0.42%, the Dow Jones up 0.09%, and the S&P 500 gaining for the eighth consecutive day, indicating strong demand for tech stocks, particularly driven by Nvidia's performance.
- Futures Market Volatility: In overnight trading on Monday, U.S. stock futures declined, with Dow futures falling 0.46%, S&P 500 futures down 0.41%, and Nasdaq 100 futures dropping 0.63%, reflecting market uncertainty over the Middle East situation, especially the escalating conflict between Israel and Lebanon.
- Oil Prices Edge Up: During Monday's trading, Brent crude futures rose about 0.13%, trading at approximately $95.10 per barrel, while WTI crude futures increased by 0.05%, indicating ongoing market attention to energy demand despite an overall cautious sentiment.
- Tech Stock Dynamics: Nvidia's shares surged over 6% on Monday after CEO Jensen Huang unveiled new products at a conference in Taipei, highlighting the company's ongoing innovation in AI workloads for data centers, further solidifying its leadership position in the tech industry.
See More
Apple's WWDC to Determine AI Winner Status
- Low Investor Expectations: Morgan Stanley highlights that low investor expectations create a favorable setup for Apple to reshape its narrative at the upcoming WWDC, potentially redefining its status in artificial intelligence and pushing valuations to $365-$385, with an upside target of $440.
- Dependence on iPhone Sales: iPhone sales account for nearly 55% of Apple's total revenue, while services like iCloud and the App Store contribute about 25%, making the company's performance in AI particularly critical against the backdrop of advancing competitors.
- Future Revenue Outlook: Morgan Stanley anticipates that Apple could experience a performance boost similar to the 20-point increase seen after WWDC 2024, should its AI platform and vision gain recognition, potentially attracting more investor interest.
- New Service Launch: Apple plans to introduce a new bill-splitting service at WWDC, aiming to expand its influence in everyday financial tools, while also targeting the launch of its first smart glasses in late 2027, further diversifying its product line.
See More
