Why Meta Shares Are Trading Higher By Around 6%; Here Are 20 Stocks Moving Premarket
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2025
0mins
Source: Benzinga
Meta Platforms Earnings Report: Meta Platforms, Inc. shares rose 6.1% in pre-market trading after reporting first-quarter earnings of $6.43 per share, significantly exceeding analyst expectations of $5.21, and projecting second-quarter revenue between $42.5 billion and $45.5 billion.
Stock Movements: Several stocks experienced notable changes in pre-market trading, with NanoVibronix, Inc. rising 81.8% and biote Corp. falling 46%, while Microsoft Corporation also saw an 8.2% increase following better-than-expected financial results.
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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: 567.580
Low
655.15
Averages
824.71
High
1117
Current: 567.580
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 Plans Significant Increase in Capital Expenditures
- Surge in Capital Expenditures: Meta plans to increase capital expenditures to between $125 billion and $145 billion by 2026, nearly doubling from $72 billion in 2025, primarily due to rising component costs, particularly memory prices, raising investor concerns about future profitability.
- Strong Ad Performance: Despite the increased spending, Meta's advertising business remains robust, with a 19% increase in ad impressions and a 12% rise in average ad prices in Q1, indicating enhanced user engagement and advertisers' willingness to pay more.
- User Engagement Growth: Meta's Instagram Reels saw a 10% increase in user time spent in Q1, while total video time on Facebook rose over 8% globally, demonstrating that the application of AI technology is effectively enhancing user experience and advertising effectiveness.
- Uncertain Future Outlook: Although Meta's P/E ratio stands at about 21 times, reflecting market concerns over investment returns, the company has historically achieved compounded shareholder value through bold investments, suggesting that if revenue continues to grow rapidly, today's stock price may appear cheap in hindsight.
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- Google Cloud Growth: In Q1 2026, Google Cloud's backlog nearly doubled to over $460 billion, indicating robust growth momentum in the cloud computing sector, which is expected to generate significant revenue for the company.
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- IPO Performance: SpaceX completed its IPO at $135 per share, opening at $150 and gaining 23% in its first week of trading, indicating strong market demand and investor confidence, although this short-term surge may not be sustainable.
- Attractive Technology Potential: Amid the AI boom, SpaceX has drawn investor interest with its rocket launches, satellite connectivity, and AI technology, particularly the development of reusable rockets that could significantly reduce costs for clients like NASA, enhancing long-term profitability.
- High Investment Requirements: To achieve its goals, SpaceX must invest billions annually, with capital expenditures in AI exceeding $12 billion last year, resulting in a net loss, meaning investors must accept the risk of limited profitability.
- Historical Performance Reference: SpaceX's first-day gain of nearly 20% aligns with the average IPO return from 1990 to 2025, but historical data shows that 8 out of the 10 largest IPOs experienced stock price declines in the following 12 months, averaging a 12% drop, indicating potential volatility risks for SpaceX's future stock price.
See More
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- Surge in Capital Expenditures: Meta plans to increase capital expenditures to between $125 billion and $145 billion by 2026, nearly doubling from $72 billion in 2025, primarily due to rising component costs, particularly memory prices, raising investor concerns about future profitability.
- Strong Ad Performance: Despite the increased spending, Meta's advertising business remains robust, with a 19% increase in ad impressions and a 12% rise in average ad prices in Q1, indicating enhanced user engagement and advertisers' willingness to pay more.
- User Engagement Growth: Meta's Instagram Reels saw a 10% increase in user time spent in Q1, while total video time on Facebook rose over 8% globally, demonstrating that the application of AI technology is effectively enhancing user experience and advertising effectiveness.
- Uncertain Future Outlook: Although Meta's P/E ratio stands at about 21 times, reflecting market concerns over investment returns, the company has historically achieved compounded shareholder value through bold investments, suggesting that if revenue continues to grow rapidly, today's stock price may appear cheap in hindsight.
See More
2026 List of $1 Trillion Market Cap Companies
- Trillion Dollar Club: As of June 2026, Nvidia leads the trillion-dollar club with a market cap of $5.1 trillion, showcasing its dominant position in the AI chip market and is expected to continue benefiting from massive AI demand.
- Cloud Service Growth: Alphabet, Microsoft, and Amazon's cloud services are all trillion-dollar companies, with Google Cloud's backlog nearly doubling to over $460 billion in Q1 2026, indicating strong market competitiveness and growth potential.
- Apple's Growth Potential: Apple, with a market cap of $4.4 trillion, remains a key player in the trillion-dollar club, and its upcoming AI-powered smart glasses are predicted to drive significant growth, further solidifying its market leadership.
- Defensive Investment Choices: Berkshire Hathaway and Eli Lilly are viewed as defensive investments during economic downturns, with Berkshire's diversification and strong balance sheet positioning it well, while Lilly's demand for cancer and weight-loss drugs is expected to remain stable despite economic fluctuations.
See More
SpaceX Completes Historic IPO, Attracts Investor Interest
- Strong IPO Performance: SpaceX completed the world's largest IPO at $135 per share, opening at $150 and gaining 23% in its first week of trading, indicating robust market demand and investor confidence.
- Investment Risk Advisory: Despite the strong short-term performance, SpaceX's long-term profitability remains uncertain, particularly as its AI business incurred over $12 billion in capital expenditures last year, leading to a net loss, necessitating cautious risk assessment by investors.
- Technological Innovation Potential: SpaceX is developing reusable rocket technology, aiming to launch the Starship later this year, which could significantly reduce launch costs for clients like NASA while supporting its connectivity and AI businesses, enhancing overall operational efficiency.
- Historical Performance Reference: SpaceX's first-day gain of nearly 20% aligns with the average IPO return from 1990 to 2025, but historical data shows that 8 out of the 10 largest IPOs experienced stock price declines within 12 months, averaging a 12% drop, suggesting investors should prepare for potential volatility.
See More
Analysis of $1 Trillion Market Cap Companies on U.S. Exchanges
- Overview of Trillion-Dollar Companies: Currently, there are 13 companies on U.S. exchanges with market caps exceeding $1 trillion, including giants like Apple, Google, and Amazon, showcasing their strong competitive positions and growth potential in the market.
- Google Cloud Growth: In Q1 2026, Google Cloud's backlog nearly doubled to over $460 billion, indicating robust growth momentum in the cloud computing sector, which is expected to generate significant revenue for the company.
- AI-Driven Market Opportunities: As AI technology continues to advance, companies like Google and Nvidia are likely to expand their market shares in their respective fields, particularly with Google's potential in autonomous driving and quantum computing, which could become future profit growth drivers.
- Defensive Investment Choices: In the context of increasing economic uncertainty, Berkshire Hathaway and Eli Lilly are viewed as top defensive investment picks, with the former benefiting from a diversified portfolio and strong balance sheet, while the latter maintains stability due to ongoing demand for its cancer and weight-loss drugs.
See More
Indonesia Plans to Embed AI in Key Government Programs
- Economic Growth Target: The Indonesian government aims to implement AI from 2026 to 2029, projecting a 12% increase in GDP by 2030, equivalent to approximately $366 billion, highlighting its commitment to economic development.
- Free Meals Initiative: AI will be utilized in Prabowo's free meals program to design region-specific menus, monitor kitchen hygiene, and predict food demand, aiming to enhance efficiency and reduce operational costs, despite criticisms over transparency.
- Infrastructure Challenges: While Microsoft plans to invest $1.7 billion in expanding cloud services and AI in Indonesia, analysts note that the country faces significant challenges due to a lack of infrastructure and AI skills, potentially relegating it to a consumer of foreign products.
- Regulatory and Risk Management: The draft regulation mandates government bodies to report AI-related risks, including misuse of biometrics and intellectual property violations, indicating the government's awareness of the potential risks associated with AI applications.
See More
SpaceX Achieves Historic Largest IPO
- IPO Performance: SpaceX completed its IPO at $135 per share, opening at $150 and gaining 23% in its first week of trading, indicating strong market demand and investor confidence, although this short-term surge may not be sustainable.
- Attractive Technology Potential: Amid the AI boom, SpaceX has drawn investor interest with its rocket launches, satellite connectivity, and AI technology, particularly the development of reusable rockets that could significantly reduce costs for clients like NASA, enhancing long-term profitability.
- High Investment Requirements: To achieve its goals, SpaceX must invest billions annually, with capital expenditures in AI exceeding $12 billion last year, resulting in a net loss, meaning investors must accept the risk of limited profitability.
- Historical Performance Reference: SpaceX's first-day gain of nearly 20% aligns with the average IPO return from 1990 to 2025, but historical data shows that 8 out of the 10 largest IPOs experienced stock price declines in the following 12 months, averaging a 12% drop, indicating potential volatility risks for SpaceX's future stock price.
See More
