Meta Attracts $77 Million in Bullish Option Block Trades: Options Chatter
$Meta Platforms (META.US)$ attracted a total of $77 million in bullish option block trades in the first hour of trading Wednesday, a day after the tech giant announced a 20-year deal to secure nuclear energy to power artificial intelligence.
The biggest of the block trades had an active buyer paying a premium of $25.32 million for call options that give the holder the right to buy 200,000 Meta shares at $720 each by Dec. 18. That strike price is more than $38 above the current stock price of $681.33.
The bullish transactions were posted a day after the company agreed to but 1,121 megawatts of emissions-free nuclear energy beginning June 2027 from Constellation Energy's Clinton facility.
Meta, the parent company of Facebook, Instagram and WhatsApp, will likely pay about $80 per megawatt hour under that deal, cheaper than the price of at least $110 under Microsoft's agreement with Constellation for nuclear power from its Three Mile Island plant, Bloomberg reported, citing Jefferies analyst Paul Zimbardo.
Meta's deal with Constellation Energy signaled sustained demand for artificial intelligence that helped the social media giant improve its ad targeting, bolstering revenue.
In the first quarter, revenue climbed 16% to $42.3 billion as the average price per ad increased 10%, Meta said in its earnings release on April 30. That beat analysts' estimates by 2.3%, the 11th straight time that the company surpassed quarterly revenue expectations, according to data compiled by Bloomberg.
JPMorgan analysts including Doug Anmuth raised their December 2025 price target for Meta shares to $735 Wednesday from $675, citing "greater confidence in Meta's strong top-line growth and ongoing const efficiencies. That price target is based on 26X the expected earnings per share of $28.09 for the year 2026.
"Meta is in rarefied air across the combination of scale, growth, and profitability, as the company’s massive reach and engagement continue to drive network effects, and its targeting abilities provide significant value to advertisers," the JPMorgan analysts wrote in a note to clients. "Meta is also focused on the two big tech waves of AI and Metaverse, and it will spend into those major growth opportunities while also remaining disciplined."
In April, Meta raised its capital expenditure outlook to a range of $64 billion to $72 billion, from a previous outlook of $60 billion to $65 billion, reflecting its additional data center investments to support AI initiatives and an increase in the expected cost of infrastructure hardware.
Shares climbed about 17% so far this year, outpacing all its peers in the so-called Magnificent Seven stocks. That compares with a 10% gain for $Microsoft (MSFT.US)$ and 5.2% advance for $NVIDIA (NVDA.US)$ . The rest of the elite group are still down this year including $Amazon (AMZN.US)$, $Alphabet-A (GOOGL.US)$, $Tesla (TSLA.US)$ and $Apple (AAPL.US)$
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Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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105294815 : Can it be translated into Malay?
103325225 : crazy…77m position to close
71426715 :
Key Strengths Behind Meta’s Momentum
Relative to Peers in the Magnificent Seven
Concerns to Watch
Outlook: Will Meta Keep Outperforming?
1. Consistent Revenue Beats: Surpassing revenue expectations 11 straight quarters shows strong execution and resilience, even in a competitive ad market.
2. Ad Pricing Power: A 10% increase in average ad price highlights Meta’s ability to drive monetization via better targeting and platform value.
3. AI & Metaverse Investment: The raised capex guidance ($64B–$72B) shows Meta is doubling down on foundational tech trends—AI and immersive digital experiences—which could pay off massively in 2026+.
4. Profitability at Scale: With a projected $28.09 EPS in 2026 and a 26x valuation multiple, Meta is trading at a premium, but one that seems justified given its scale, margin strength, and future-facing focus.
• Meta +17% YTD vs:
• Microsoft +10%
• NVIDIA +5.2%
• Amazon, Alphabet, Tesla, and Apple all down YTD
Meta stands out not just for its stock performance but also because it’s delivering operationally while navigating AI and social media regulation risks.
• High Spending: While investment in AI and data centers is promising, such aggressive capex carries risk if monetization lags.
• Regulatory Overhang: Privacy regulations or antitrust actions remain long-term risks.
• Competition in AI/Ads: While Meta leads in targeting, newer models from OpenAI (via Microsoft), Google, and even Amazon are closing the gap.
⸻
Yes, likely—at least in the medium term. Strong fundamentals, compelling valuation (even at 26x 2026 EPS), and strategic alignment with high-growth tech areas position Meta as a leader. Unless regulatory or market-wide shocks hit, it seems poised to remain a top performer among its elite peers in 2025.
71256593 : which platform is this data from?