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Meta Platforms (META) reports Q3 2025 earnings on October 29th, with traders watching whether the social media giant can maintain its advertising momentum amid increased competition and regulatory scrutiny. The volatile stock has become synonymous with dramatic earnings moves.

META shares have soared over 20% during the past year, but this remarkable performance masks extreme volatility, especially around quarterly results.

For active traders looking to capitalize on Meta’s notoriously volatile earnings moves, Direxion Daily META Bull 2X and Bear 1X Shares (METU & METD), launched in June 2024, provide tactical tools to trade the stock’s explosive swings without traditional margin requirements.

Q3 Earnings Expectations and Volatility

Wall Street expects Meta to report earnings of $6.74 per share in Q3, an 11.8% increase from the $6.03 reported in the same quarter last year. This reflects continued strength in advertising revenue and improving operational efficiency.

The company’s earnings history shows exceptional results, with Meta beating expectations in each of the last four quarters. The Q2 report triggered an 11.3% rally when EPS of $7.14 exceeded forecasts by 22.5%, demonstrating the stock’s tendency for outsized moves.

Options markets are pricing in significant movement, with implied volatility elevated ahead of the report. The stock often experiences substantial volatility around their earnings reports.

Recent Stock Action and Market Dynamics

META has recovered from recent weakness as optimism about AI monetization and improving engagement metrics offsets concerns about competition and regulation. The stock’s correlation with broader tech sentiment and advertising trends has intensified.

Recent volatility has been notable, with numerous moves exceeding 5% as the market weighs growth prospects against regulatory headwinds. Competition from TikTok and emerging platforms continues pressuring user engagement metrics, particularly among younger demographics.

Analyst sentiment remains bullish overall with 47 analysts showing a “Strong Buy” rating against just 1 “Strong Sell” recommendation. The wide price target range from $658 to $1,086 reflects differing views about Meta’s growth trajectory and metaverse investments.

Key Factors for Q3 Results

Several elements will drive the stock’s reaction when META reports:

• Advertising Revenue Growth: The critical metric showing demand strength and pricing power across platforms.
• User Engagement Metrics: Daily and monthly active users across Facebook, Instagram, and WhatsApp.
• Reality Labs Losses: Metaverse division spending and any signs of progress toward profitability.
• AI Monetization Progress: Updates on AI-driven ad targeting and content recommendation improvements.
• Operating Margin Trends: Efficiency gains from the “Year of Efficiency” initiative and cost controls.
• Capital Allocation Updates: Buyback activity and dividend policy given strong cash generation.

Trading META Earnings With Direxion ETFs

META typically experiences substantial volatility following its earnings reports, presenting significant opportunities for well-positioned traders. Direxion Daily META Bull 2X and Bear 1X Shares let traders amplify or hedge META price action.

Bullish Trades: METU

Direxion Daily META Bull 2X Shares (METU) allows traders to double their exposure to potential META gains. METU seeks 200%, before fees and expenses, of META’s daily performance through financial instruments.

• Targets 200% of META’s daily performance
  • When Meta rises 1%, METU aims for a 2% gain (before fees)
  • When Meta falls 1%, METU typically drops 2% (before fees)
• Suited for traders expecting revenue beats or margin expansion
• Captures Meta’s growth potential with additional leverage
• Average daily volume: 1.8 million shares

Bearish Strategy: METD

Direxion Daily META Bear 1X Shares (METD) provides inverse exposure to Meta without requiring short-selling. This feature helps traders in retirement accounts where IRA and 401(k) rules prohibit traditional shorting.

• Delivers inverse (-1X) daily performance versus META
  • When Meta drops 1%, METD aims for a 1% gain (before fees)
  • When Meta rises 1%, METD typically falls 1% (before fees)
• Valuable for traders worried about disappointing user metrics or guidance
• Allows retirement account holders to express bearish views on META
• Average daily volume: 229,000 shares

Both METU and METD reset their exposure daily and work best as short-term trading tools rather than buy-and-hold investments. These products require active oversight and are designed for traders who understand leverage effects and daily rebalancing dynamics.

With META facing critical questions about user growth, AI monetization, and metaverse investments, these leveraged ETFs provide traders with powerful tools to capitalize on whatever direction the stock takes on October 29th.

Short-selling means borrowing shares to sell them, hoping to repurchase at lower prices later.

Options are financial contracts that give the holder the right, but not the obligation to buy or sell a specific asset at a predetermined price within a specified timeframe.

To learn more about all Direxion’s Single Stock Leveraged and Inverse ETFS, Click Here

Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stack rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods /anger than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will Jose money even if the underlying stock’s performance increases. and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in META.

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund’s investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.

Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with META and may increase the volatility of the Bull Fund.

Daily Correlation Risk – A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with META and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to META is impacted by META’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to META at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to META increases on days when META is volatile near the close of the trading day.

Daily Inverse Correlation Risk – A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with META and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to META is impacted by META’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to META at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to META increases on days when META is volatile near the close of the trading day.

Meta Platforms, Inc. Investing Risk — Meta Platforms, Inc. is subject to a number of risks related to: its product offerings;  business operations and financial results; government regulation and enforcement; the ability to collect and use consumer data; data, security and intellectual property; among other risks.

Information Technology Sector Risk — The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and internationally, including competition from competitors with lower production costs. 

Interactive Media & Services Industry Risk — The prices of technology and media companies, especially those of smaller, less-seasoned companies, tend to be more volatile and less liquid than the overall market. These companies are subject to rapid changes in technology and consumer platform preference, including the increased use of mobile-based apps, competition for advertising revenue, changes in audience preferences, evolving industry standards and frequent new product productions.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Concentration Risk, Market Risk, Non-Affiliation Risk, Security Volatility Risk and Cash Transaction Risk. Additionally, for the Direxion Daily META Bear 1X Shares, Shorting or Inverse Risk.  Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.

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