Meta Platforms' beat-and-raise has triggered a frenzy among analysts and options traders
Meta Platforms Inc (NASDAQ:META) is trying to keep the tech sector afloat today. The Big Tech titan is up 8.6% to trade at $515.79 today, after the social media company reported adjusted second-quarter earnings of $5.16 per share on $39.07 billion in revenue, both of which topped analyst estimates.
Meta also hiked its full-year guidance, with heavy investment into artificial intelligence (AI) and continued digital ad market dominance contributing to the triple play. In response, no fewer than 25 brokerages hiked their price target, the highest coming from Wells Fargo to $647 from $625.
META is on track for its best single-session gain since the 20.3% post-earnings pop on Feb. 2. The shares are now up 42% in 2024, within striking distance of their July 8 record high of $542.81. Despite cooling off from three-straight weekly losses, the pullback found support at the stock's ascending 160-day moving average.
Options volume has exploded today, with over 628,000 contracts changing hands, volume that's three times the average intraday amount and pacing for the 99th percentile of its annual range. The weekly 8/2 520- and 530-strike calls are the most popular today, while the August 500 call is seeing notable sell-to-open activity.
The penchant for calls is nothing new. META consistently sits near the top of Senior Quantitative Analyst Rocky White's list of stocks attracting the most options volume in the last two weeks. Over that period, Meta saw 2,801,210 calls and 1,698,838 puts traded. Most popular during this time period was the July 485 call.
