New product allows 5x levered bets on the Magnificent Seven.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 28 2024
0mins
Should l Buy META?
Source: MarketWatch
- Investors can now make turbocharged bets: A new exchange-traded product offers five times leverage on the Magnificent Seven group of stocks in the technology sector.
- Caution advised: While this opportunity exists, it is highlighted that investors should be cautious about making such high-leverage bets.
- Unprecedented leverage: The Leverage Shares 5x Long Magnificent Seven ETP is noted as one of the most heavily levered products available for trading in developed markets.
- Comparison to other leveraged products: This new ETP is compared to a seven-times levered index on oil and gas futures in Europe.
- Expert opinion: ETF analyst Todd Sohn from Strategas Securities provides insights into the implications and risks associated with this highly leveraged product.
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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: 592.920
Low
655.15
Averages
824.71
High
1117
Current: 592.920
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.
Meta Platforms' AI-Driven Revenue Growth
- User Engagement Surge: Meta's use of AI technology to enhance user engagement on Facebook and Instagram has resulted in a 30% year-over-year increase in time spent on Instagram Reels, significantly driving advertising revenue and strengthening the company's competitive position in the social media market.
- Record Revenue Achievement: In 2025, Meta achieved a record revenue of $200.9 billion, a 22% increase from the previous year; despite a slight 3% decline in net income due to a one-off tax provision, excluding this provision would have resulted in a 20% profit growth, showcasing the company's robust profitability.
- Soaring Capital Expenditures: Meta's AI-related capital expenditures reached $72.2 billion, an 84% increase, which, while not immediately impacting profits, poses long-term profitability challenges, especially with Reality Labs facing a staggering $19.2 billion loss.
- Market Valuation Potential: With a current market capitalization of $1.5 trillion, Meta is projected to reach $3 trillion within three years; if Wall Street's earnings forecasts hold true, Meta's stock would need to rise 82% by the end of 2027 to match the Nasdaq-100's P/E ratio, indicating significant investment potential.
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ZELESTRA OBTAINS $600 MILLION IN GREEN FINANCING FOR 440 MW SOLAR PORTFOLIO IN TEXAS SUPPORTED BY META PPAS
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- Project Details: The funding will support a 440 MW Texas solar portfolio backed by Meta.
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China Evaluates $2 Billion Manus Sale to Meta Amid Founders' Travel Restrictions - FT
China Review: A $2 billion sale involving Meta has been reported, highlighting significant financial movements in the tech industry.
Founders Barred: The founders of the company involved in the sale have been restricted from leaving the country, indicating potential legal or regulatory issues.
See More
Facebook Launches Creator Fast Track Program for Influencers
- Incentive Program: Facebook's newly launched Creator Fast Track program offers guaranteed payments of $1,000 per month for influencers with at least 100,000 followers, increasing to $3,000 for those with over 1 million followers, aiming to attract more content creators to boost user engagement on the platform.
- User Time Comparison: Despite having a significant male user base aged 18-24, Facebook users spend an average of just 19 hours per month on the platform, significantly lower than TikTok's 33 hours and YouTube's 27 hours, highlighting Facebook's struggle to attract video content engagement.
- Video View Increase: Meta's management reported a 7% lift in Facebook video views due to optimization efforts, indicating that the company is enhancing video content appeal through internal adjustments rather than relying solely on organic growth from user-generated content.
- Strategic Implications: By incentivizing influencers, Facebook aims to enhance engagement among younger users and maintain relevance in a competitive social media landscape, although the long-term effectiveness of such short-term incentives remains questionable.
See More
Amazon Acquires Fauna Robotics to Boost Humanoid Robot Strategy
- Acquisition Boosts Robotics Strategy: Amazon's acquisition of Fauna Robotics, while details remain undisclosed, marks a significant advancement in the humanoid robotics sector, positioning the company to compete with Tesla and seize a market opportunity projected to exceed $5 trillion by 2050.
- Fauna's Technological Potential: Founded in 2024, Fauna's Sprout robot stands at 3.5 feet tall and weighs 50 pounds, designed to be approachable for software developers; although not yet suitable for industrial use, it can help Amazon gather valuable data in the home robotics space.
- Ongoing Robotics Investments: This isn't Amazon's first foray into robotics, having acquired Kiva Systems for $775 million in 2012; the acquisitions of Fauna and Swiss company Rivr signal Amazon's commitment to rapidly enhance its robotics capabilities.
- E-commerce Profit Potential: By increasing warehouse and delivery automation, Amazon aims to transform its e-commerce operations into a more profitable segment, with the Fauna acquisition indicating its intent to lead in the home humanoid robot market.
See More
Amazon Acquires Humanoid Robotics Firm Fauna
- Acquisition Context: On March 24, Amazon announced its acquisition of humanoid robotics company Fauna, and while the deal specifics remain undisclosed, this move signifies a substantial advancement for Amazon in the robotics sector, potentially positioning it favorably for future market competition.
- Market Potential: A Morgan Stanley research report estimates that the humanoid robotics market could exceed $5 trillion by 2050, providing a robust market backdrop for Amazon's acquisition and indicating the company's intent to secure a foothold in this rapidly growing field.
- Product Features: Fauna's Sprout robot stands at 3 feet 6 inches tall and weighs 50 pounds, designed to offer a friendly experimental platform for software developers; although not suited for industrial applications, it could assist Amazon in gathering demand data related to the home robotics market.
- Strategic Implications: This acquisition aligns with Amazon's previous purchases of Kiva Systems and Rivr, demonstrating the company's ambition to enhance its e-commerce profitability through robotics technology, thereby maintaining its leadership position in the global e-commerce market.
See More
Meta Platforms' AI-Driven Revenue Growth
- User Engagement Surge: Meta's use of AI technology to enhance user engagement on Facebook and Instagram has resulted in a 30% year-over-year increase in time spent on Instagram Reels, significantly driving advertising revenue and strengthening the company's competitive position in the social media market.
- Record Revenue Achievement: In 2025, Meta achieved a record revenue of $200.9 billion, a 22% increase from the previous year; despite a slight 3% decline in net income due to a one-off tax provision, excluding this provision would have resulted in a 20% profit growth, showcasing the company's robust profitability.
- Soaring Capital Expenditures: Meta's AI-related capital expenditures reached $72.2 billion, an 84% increase, which, while not immediately impacting profits, poses long-term profitability challenges, especially with Reality Labs facing a staggering $19.2 billion loss.
- Market Valuation Potential: With a current market capitalization of $1.5 trillion, Meta is projected to reach $3 trillion within three years; if Wall Street's earnings forecasts hold true, Meta's stock would need to rise 82% by the end of 2027 to match the Nasdaq-100's P/E ratio, indicating significant investment potential.
See More
ZELESTRA OBTAINS $600 MILLION IN GREEN FINANCING FOR 440 MW SOLAR PORTFOLIO IN TEXAS SUPPORTED BY META PPAS
- Funding Announcement: Zelestra has secured $600 million in green financing.
- Project Details: The funding will support a 440 MW Texas solar portfolio backed by Meta.
See More
China Evaluates $2 Billion Manus Sale to Meta Amid Founders' Travel Restrictions - FT
China Review: A $2 billion sale involving Meta has been reported, highlighting significant financial movements in the tech industry.
Founders Barred: The founders of the company involved in the sale have been restricted from leaving the country, indicating potential legal or regulatory issues.
See More
Facebook Launches Creator Fast Track Program for Influencers
- Incentive Program: Facebook's newly launched Creator Fast Track program offers guaranteed payments of $1,000 per month for influencers with at least 100,000 followers, increasing to $3,000 for those with over 1 million followers, aiming to attract more content creators to boost user engagement on the platform.
- User Time Comparison: Despite having a significant male user base aged 18-24, Facebook users spend an average of just 19 hours per month on the platform, significantly lower than TikTok's 33 hours and YouTube's 27 hours, highlighting Facebook's struggle to attract video content engagement.
- Video View Increase: Meta's management reported a 7% lift in Facebook video views due to optimization efforts, indicating that the company is enhancing video content appeal through internal adjustments rather than relying solely on organic growth from user-generated content.
- Strategic Implications: By incentivizing influencers, Facebook aims to enhance engagement among younger users and maintain relevance in a competitive social media landscape, although the long-term effectiveness of such short-term incentives remains questionable.
See More
Amazon Acquires Fauna Robotics to Boost Humanoid Robot Strategy
- Acquisition Boosts Robotics Strategy: Amazon's acquisition of Fauna Robotics, while details remain undisclosed, marks a significant advancement in the humanoid robotics sector, positioning the company to compete with Tesla and seize a market opportunity projected to exceed $5 trillion by 2050.
- Fauna's Technological Potential: Founded in 2024, Fauna's Sprout robot stands at 3.5 feet tall and weighs 50 pounds, designed to be approachable for software developers; although not yet suitable for industrial use, it can help Amazon gather valuable data in the home robotics space.
- Ongoing Robotics Investments: This isn't Amazon's first foray into robotics, having acquired Kiva Systems for $775 million in 2012; the acquisitions of Fauna and Swiss company Rivr signal Amazon's commitment to rapidly enhance its robotics capabilities.
- E-commerce Profit Potential: By increasing warehouse and delivery automation, Amazon aims to transform its e-commerce operations into a more profitable segment, with the Fauna acquisition indicating its intent to lead in the home humanoid robot market.
See More
Amazon Acquires Humanoid Robotics Firm Fauna
- Acquisition Context: On March 24, Amazon announced its acquisition of humanoid robotics company Fauna, and while the deal specifics remain undisclosed, this move signifies a substantial advancement for Amazon in the robotics sector, potentially positioning it favorably for future market competition.
- Market Potential: A Morgan Stanley research report estimates that the humanoid robotics market could exceed $5 trillion by 2050, providing a robust market backdrop for Amazon's acquisition and indicating the company's intent to secure a foothold in this rapidly growing field.
- Product Features: Fauna's Sprout robot stands at 3 feet 6 inches tall and weighs 50 pounds, designed to offer a friendly experimental platform for software developers; although not suited for industrial applications, it could assist Amazon in gathering demand data related to the home robotics market.
- Strategic Implications: This acquisition aligns with Amazon's previous purchases of Kiva Systems and Rivr, demonstrating the company's ambition to enhance its e-commerce profitability through robotics technology, thereby maintaining its leadership position in the global e-commerce market.
See More
