To The Moon

2025 Q2 Earnings Expectations

• $Meta Platforms, Inc.(META)$ Gradually improving AI tools are significantly enhancing ad spend ROI.

• With tariff policy easing, e-commerce ad spending resumed growth in May and June.

• Meta’s Q2 revenue is projected to reach $45.5 billion, a 16.5% YoY increase, exceeding expectations.

• Operating profit is expected to hit $17.4 billion, also surpassing forecasts.

• The market is concerned about a potential sharp increase in 2026 capital expenditures.

How to Evaluate META’s Earnings Outlook

1. AI tool investments are paying off, and the core advertising business remains robust.

2. The company made a massive investment in data centers during Q2, spending hundreds of billions, indicating strong confidence in mid-term revenue growth.

3. While increased capital expenditure is a positive for long-term growth, the market may become cautious about profit expectations.

Expected post-earnings volatility: ±6.5%, with a trading range of $673–$765.

Trading Strategy

• Strong business performance, but mixed market sentiment regarding spending.

• With no major bearish catalysts, the stock is unlikely to break below the expected range. Selling put options is a viable strategy.

• Sell put options before the earnings announcement and close the position at the market’s opening on the release day.

• For those holding Meta stock, sell out-of-the-money call options to generate additional income.

Strike Price and Expiration Suggestions

1. Covered Call Writing Strategy:

   • $META 20250801 770.0 CALL$  (84% win rate).

2. Put Selling Strategy:

   • $META 20250801 670.0 PUT$  (80% win rate).