Meta Platforms‘ META shares have surged 47.3% year to date (YTD), outpacing the Zacks Internet – Software industry’s growth of 15.3% and the broader Zacks Computer & Technology sector’s return of 21%.
META’s stock rise is primarily attributed to its strategic utilization of AI across its platforms, which include Facebook, Instagram, WhatsApp, and Messenger. These platforms collectively engage with around 3.2 billion users on a daily basis.
The company’s focus on nurturing a rich creator base has been a significant driver of its success. Notably, META recently unveiled a Creator Lab in India, one of its key markets. This educational resource, created by and for creators, aims to empower and educate the creator community.
Meta Platforms is enhancing its Threads web features by introducing new capabilities such as insights, multiple drafts, and scheduling functions. These enhancements are designed to facilitate creators in planning and managing content while connecting with new and existing audiences.
Notably, META’s AI initiatives are gaining momentum with expanded access to Meta AI, now available in seven additional languages and 22 new countries.
META to Focus on Geothermal Energy for AI Data Centers
Data centers powering AI functionalities consume vast amounts of energy. META, along with industry giants like NVIDIA, Amazon, Microsoft, and Google, is projected to collectively invest $1 trillion in AI-related data center upgrades, leading to a surge in energy consumption.
To fuel its AI initiatives, Meta Platforms anticipates a capital expenditure of $37-$40 billion by 2024, allocating resources toward developing cutting-edge models and bolstering its AI services.
Meta Platforms is now turning its attention to expanding its reliance on geothermal energy as part of its commitment to sustainable operations.
In collaboration with Sage Geosystems, Meta Platforms has announced plans to boost geothermal power generation in the United States. This venture is intended to deploy a geothermal system, starting from 2027, with the capacity to generate 150 megawatts of emission-free power for data centers.
Notably, this initiative marks the pioneering use of next-generation geothermal power in the U.S., underscoring the potential of geothermal energy as a viable renewable resource nationwide. Leveraging Sage Geosystems’ Geopressured Geothermal System (GGS) technology, Meta Platforms aims to reduce carbon emissions and satisfy the escalating electricity demands of its data centers.
Looking at the options trading landscape today, there are notable movements within the S&P 500 index. Particularly, Tesla Inc (Symbol: TSLA) is in the spotlight, with a robust total volume of 1.2 million contracts traded so far. This amount is equivalent to around 115.7 million underlying shares. The trading volume seen today is a remarkable 162.1% of TSLA's average daily volume over the past month, standing at 71.4 million shares. Of particular interest is the high volume observed for the $220 strike call option expiring on September 06, 2024, with 82,024 contracts traded, reflecting approximately 8.2 million shares of TSLA. Visualize TSLA's last twelve-month trading history below, with the $220 strike depicted in orange:
Boeing Co. (Symbol: BA) also experienced significant options trading activity today, with a volume of 73,301 contracts, translating to around 7.3 million underlying shares. This volume represents approximately 131.4% of BA's average daily trading volume for the last month, standing at 5.6 million shares. High volume was noted for the $165 strike call option expiring on September 06, 2024, with 4,727 contracts traded, reflecting about 472,700 underlying shares of BA. The chart below illustrates BA's trailing twelve-month trading history, with the $165 strike highlighted:
Apple Inc (Symbol: AAPL) is another player with notable options volume, boasting 581,260 contracts traded today. These contracts represent approximately 58.1 million underlying shares, amounting to a substantial 131.3% of AAPL's average daily trading volume over the past month, which is 44.3 million shares. Noteworthy activity was seen for the $225 strike call option expiring on September 06, 2024, with 31,798 contracts traded so far, representing roughly 3.2 million underlying shares of AAPL. The image below showcases AAPL's trading history, with the $225 strike highlighted:
For more detailed information on available expirations for TSLA, BA, or AAPL options, interested investors can visit StockOptionsChannel.com.
Explore More: Historical Stock Prices of PYPLV CPHC Shares Outstanding History Exploring ZTS Market Cap HistoryThe GGS technology stands out for its utilization of hot dry rock, an abundant resource that enables rapid scalability and deployment, both domestically and globally.
As one of the foremost corporate patrons of renewable energy globally, Meta Platforms has inked agreements for over 12,000 MW in renewable energy projects. These efforts align with the broader objective to transition towards a carbon-neutral economy by offering sustainable solutions.
META Stock’s Prospects Rides on AI Usage
Reporting a 22% year-over-year revenue surge to $39.1 billion, Meta Platforms credits the uptick to heightened user engagement driven by AI-driven content recommendations.
Instagram has emerged as a significant revenue source for Meta Platforms, leveraging AI for content curation. About 40% of content shown on Instagram is recommended through Meta AI, leading to a 24% increase in user engagement on the platform since the inception of Reels.
Messenger and WhatsApp are pivotal drivers for Meta Platforms, particularly with the rapid adoption of WhatsApp Business by small and medium-sized enterprises. The burgeoning usage of these platforms for communication positions Meta Platforms to leverage opportunities in the payments market.
Meta Platforms’ future success hinges on the seamless execution of its forward-looking strategies, encompassing metaverse development, AI integration, and revenue diversification. While currently holding a Zacks Rank of #3 (Hold), the company’s long-term growth trajectory will be influenced by its adeptness in navigating regulatory hurdles, economic dynamics, and competitive pressures while capitalizing on emerging digital and virtual prospects.
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