Deal Dispatch: Chicken Chains, Solar Pains And Disney's Hulu Gains — Plus, Why Big Tech Should Break Up
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 13 2025
0mins
Source: Benzinga
Bojangles Sale and M&A Activity: Bojangles, a fried chicken and biscuit chain, is being valued at $1.5 billion, attracting interest from private equity firms and strategic buyers amid a surge in U.S. chicken sales and broader M&A activity in the restaurant industry.
Corporate Acquisitions and Bankruptcy Updates: Meta Platforms has acquired a 49% stake in Scale AI for $14.8 billion, while Disney has bought Comcast's stake in Hulu for approximately $9 billion. Meanwhile, Marelli Holdings filed for bankruptcy due to financial struggles exacerbated by tariffs and supply chain issues.
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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: 627.570
Low
655.15
Averages
824.71
High
1117
Current: 627.570
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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- Capital Expenditure Plans: Meta plans to raise its capital expenditures for 2026 to between $125 billion and $145 billion, nearly double the $72 billion spent in 2025, which may pressure short-term profits but could drive long-term business growth if executed effectively.
- Profitability Challenges: Despite reporting earnings of $10.44 per share in Q1, the figure was inflated by an $8.03 billion tax benefit, leading to a real earnings figure of $7.31 per share, reflecting only a 14% growth, indicating that high spending is negatively impacting profitability and warranting investor scrutiny.
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- Advertising Revenue Surge: Meta's Q1 advertising revenue increased by 33% year-over-year to $55 billion, driven by a 19% rise in ad impressions and a 12% increase in average pricing per ad, showcasing the positive impact of AI on advertising effectiveness and enhancing the company's competitive position in a crowded market.
- Capital Expenditure Plans: Meta plans to raise its capital expenditures for 2026 to between $125 billion and $145 billion, nearly double the $72 billion spent in 2025, which may pressure short-term profits but could drive long-term business growth if executed effectively.
- Profitability Challenges: Despite reporting earnings of $10.44 per share in Q1, the figure was inflated by an $8.03 billion tax benefit, leading to a real earnings figure of $7.31 per share, reflecting only a 14% growth, indicating that high spending is negatively impacting profitability and warranting investor scrutiny.
- Market Outlook Uncertainty: Meta's stock price could fluctuate between $500 and $1,000 in the coming years, highlighting the risk balance between heavy reliance on advertising revenue and elevated spending; an economic slowdown could exacerbate this uncertainty, prompting investors to carefully assess risks and opportunities.
See More
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- Remarkable Funding: Anthropic announced this week that it has completed a $65 billion funding round, bringing its valuation close to $1 trillion, indicating strong market confidence in its future growth and potentially enhancing its leadership position in the AI sector.
- Profitability Challenges: Despite the massive influx of capital, analysts highlight that Anthropic will need to achieve profitability to sustain its high valuation, especially if funding slows down, which may lead enterprises to face higher usage fees, impacting their willingness to adopt the technology.
- Shifting Market Dynamics: As major tech companies are projected to invest around $750 billion in AI development in 2026, the return on investment for AI spending is being questioned, particularly as companies like Microsoft have begun to cut back on Claude subscriptions, reflecting a reassessment of AI expenditure rationality.
- Evolving Competitive Landscape: In the AI market, competition is intensifying between Anthropic and rivals like OpenAI, particularly in enterprise applications, where Anthropic must continuously innovate to maintain its market share while facing potential threats from companies like Meta, which is attempting to expand into the enterprise market.
See More
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- Circle Stock Accumulation: During the same period, ARK Invest acquired a total of 114,223 shares of Circle, purchasing 13,973 shares on Thursday and increasing that to 100,250 shares on Friday, even as CRCL's after-hours trading remained flat, reflecting market interest in stablecoins.
- Alibaba Leads Purchases: Among all transactions, Alibaba was ARKK's largest purchase with an addition of 245,342 shares, representing about 0.45% of the ETF, demonstrating ARK's continued confidence in the Chinese market.
- Reduction in Archer and Baidu Stakes: ARK Invest reduced its holdings by offloading 784,380 shares of Archer Aviation and 457,754 shares of Baidu, indicating a cautious outlook on these companies as part of its portfolio rebalancing strategy.
See More
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- Market Performance Review: Despite volatility in March, the S&P 500, Dow Jones, and Nasdaq have surged 70%, 57%, and 142% respectively during Trump's presidency, indicating strong market performance; however, reduced buybacks in 2026 may impact future growth.
- Tax Reform Impact: The Tax Cuts and Jobs Act signed by Trump in 2017 facilitated over $1 trillion in investments, slashing the corporate tax rate from 35% to 21%, which provided funding for share buybacks and propelled stock market gains.
- Changing Buyback Trends: In 2025, S&P 500 companies repurchased a total of $1.02 trillion, but buybacks are expected to decline significantly in 2026, with Google and Meta not engaging in buybacks in the most recent quarter, indicating a shift in funding priorities.
- AI Investment vs. Buyback Conflict: As AI data center construction accelerates, many companies are reallocating funds from buybacks to AI infrastructure, leading to a decrease in buybacks that could suppress earnings per share growth and exacerbate the risk of market overvaluation.
See More
AI Revolution Drives Stock Market to New Highs
- Market New Highs: The Dow Jones, S&P 500, and Nasdaq Composite reached new highs, with gains of 57%, 70%, and 142% respectively, reflecting strong market performance under Trump’s policies, and are expected to benefit from the $15.7 trillion opportunity presented by the AI revolution.
- Declining Buybacks: Despite the Tax Cuts and Jobs Act enabling over $1 trillion in buybacks, the combined buybacks of Amazon, Alphabet, Microsoft, Meta, and Oracle fell to $12.6 billion in Q4 2025, a 70% drop from 2021 peak, which may negatively impact future earnings per share.
- AI Infrastructure Investment: Alphabet's plan to sell $84.75 billion in stock to fund its AI infrastructure will undermine the effects of its past buybacks and could lead to a significant drop in buybacks in 2026, affecting overall market liquidity.
- Increased Valuation Risks: The current Shiller P/E ratio for the S&P 500 is nearing 43, well above the historical average of 17.4, indicating a lack of margin for error in the market, with the risk of an early-stage bubble burst in AI technology potentially disappointing investor expectations.
See More
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- Valuation Analysis: NYU finance professor Aswath Damodaran believes SpaceX's target price of $135 implies a valuation of $1.77 trillion, yet he assesses its true value between $1.25 trillion and $1.35 trillion, indicating a potential overvaluation in the market.
- Business Diversity: SpaceX operates in three primary sectors: space launches, Starlink connectivity, and artificial intelligence (xAI), where the space and connectivity segments show strong unit economics, but the AI sector faces intense competition and high capital expenditures, potentially impacting overall profitability.
- Investment Risks: Damodaran emphasizes that investing in SpaceX at this valuation represents a significant bet on AI and Elon Musk, acknowledging that while market perceptions can shift, the current investment risks remain substantial.
- Market Dynamics: With SpaceX set to debut on Nasdaq on June 12, Damodaran references historical volatility in similar companies like Facebook and Uber post-IPO, suggesting that investors should approach this opportunity with caution due to inherent uncertainties.
See More
