Meta Develops Prediction Markets App 'Arena'
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 hours ago
0mins
Source: stocktwits
- App Development Progress: Meta is developing a prediction markets app called 'Arena,' which will operate independently from Facebook and Instagram, aiming to leverage Meta's vast user base for growth and attract significant user engagement.
- Market Potential: Prediction markets like Polymarket and Kalshi saw a combined $50 billion in online trades in 2025, with this year's total already surpassing $130 billion, indicating rapid growth in this sector, and Meta's entry could further enhance market dynamics.
- User Experience Innovation: Arena may initially utilize a video game-style points system instead of real-money betting, although cash wagering is not ruled out for the future, which could attract younger users and enhance user retention.
- Strategic Priority: Zuckerberg views Arena as a key experimental project, and while it remains in development, this initiative reflects Meta's strategic direction to create new apps based on emerging social behaviors, potentially transforming user interactions.
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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: 563.850
Low
655.15
Averages
824.71
High
1117
Current: 563.850
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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- Market Performance: Last year, sales of Meta Ray-Bans and Oakley reached 7 million pairs, more than tripling from the combined 2 million sold in 2023 and 2024, demonstrating Meta's strong performance in the AI eyewear market and solidifying its leadership position.
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See More
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- Surge in Trading Volume: According to Pew Research Center data, the combined global monthly trading volume on Kalshi and Polymarket skyrocketed from under $5 billion in September last year to approximately $24 billion in April, indicating strong growth potential in prediction markets.
- Platform Access Expansion: Cboe's contracts will initially be available on Interactive Brokers and will gradually roll out to other retail brokerage platforms like Charles Schwab over the coming months, expected to further broaden its market reach.
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- Importance of Long-Term Perspective: Short-term thinking can lead investors to make poor decisions during market fluctuations, so it is advised to focus on a company's prospects over the next 5 to 10 years to mitigate panic from short-term price movements.
- Identifying Investment Opportunities: While buying stocks may not be top of mind during market volatility, it is an ideal time to focus on quality companies that have performed well recently, especially when their prices retreat, allowing for attractive valuations.
See More
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- Market Volatility Phenomenon: In 2026, the S&P 500 experienced significant fluctuations, rebounding despite initial concerns about the U.S. economy, turmoil in Iran, and the sustainability of AI growth, demonstrating the market's resilience.
- Investor Psychology: Investors often panic during downturns when high-quality stocks decline; however, history shows that holding these stocks typically leads to rebounds in the short term, underscoring the importance of long-term investment.
- Risks of Short-Term Thinking: Short-term thinking can lead investors to chase high prices during market surges and panic sell during declines, making it crucial to focus on a company's prospects over the next five to ten years to mitigate poor decision-making due to price fluctuations.
- Seizing Investment Opportunities: During market volatility, the prices of quality companies may temporarily drop, and investors should take this opportunity to examine valuations of firms like Nvidia, Alphabet, and Meta, allowing for long-term investments at lower prices.
See More
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- MSCI Decision Impact: MSCI's decision to keep South Korea in the emerging market category, citing limited convertibility of the Korean won in offshore markets as a key obstacle, alongside the extension of Indonesia's emerging market status, demonstrates a cautious outlook on both markets.
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See More
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- Industry Comparison: Meta remains the only major U.S. AI developer that has not established an assessment partnership with the federal government, while competitors like OpenAI and Anthropic have agreements in place, potentially impacting Meta's competitive position in the industry.
- Regulatory Policy Shift: The executive order signed by the Trump administration expands oversight of AI systems, mandating tech companies to allow federal officials to evaluate their models before public release, which will directly affect Meta's AI product rollout.
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See More
