As 1/7th of the vaunted “Magnificent Seven” that’s been leading the way for market returns this year, Meta could continue to prosper with its investments in AI. That would give bullish traders reason to ride the momentum.
Cohesively, the Magnificent Seven were propelling the market rally of 2023. But 2024 saw each go in different directions. Meta has been the second-best performer YTD regarding price gains, only trailing behind Nvidia.
“Dubbed the Magnificent Seven stocks, Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Meta Platforms and Tesla lived up to their name in 2023 with big gains,” confirmed an Investors article. “But the end of the second quarter of 2024 showed a big divergence of returns.”
Some market analysts foresee Meta continuing to push higher, especially if their AI investments translate to tangible revenue generation. One analyst noted that the company is within the upper limits of its revenue guidance of $36.5 to $39 billion.
“We have seen a meaningful uptick in Meta ad prices. We believe this reflects ongoing progress with AI across engagement, ad relevance, and advertiser returns,” said KeyBanc analyst Justin Patterson. He noted that this revenue generation could offset its investment capital in AI.
“We would argue that we are already seeing initial returns in engagement trends and monetization, suggesting that this capex cycle is worth supporting,” Patterson added.
Meantime, traders who think Meta can only push higher may want to add leverage with the Direxion Daily META Bull 2X Shares (METU ). Alternatively, if Meta’s stock price pushes lower in the interim or if they want to add a pairs trading strategy, there’s the Direxion Daily META Bear 1X Shares (METD ).
Trade All Magnificent Seven With Single-Stock ETFs
Additionally, Direxion’s product suite of single-stock ETFs allow traders to add leverage to both bullish and bearish trades. Meta’s inclusion rounds out the Magnificent Seven, including:
- Tesla: Direxion Daily TSLA Bull 2X Shares (TSLL ) / Direxion Daily TSLA Bear 1X Shares (TSLS )
- Apple: Direxion Daily AAPL Bull 2X (AAPU ) / Direxion Daily AAPL Bear 1X Shares (AAPD )
- Amazon: Direxion Daily AMZN Bull 2X Shares (AMZU ), Direxion Daily AMZN Bear 1X Shares (AMZD )
- Google: Direxion Daily GOOGL Bull 2X Shares (GGLL ) / Direxion Daily GOOGL Bear 1X Shares (GGLS )
- Microsoft: Direxion Daily MSFT Bull 2X Shares (MSFU ) / Direxion Daily MSFT Bear 1X Shares (MSFD )
- Nvidia: Direxion Daily NVDA Bull 2X Shares (NVDU ) / Direxion Daily NVDA Bear 1X Shares (NVDD )
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