TRADE SETUP

Where do we stand fundamentally?

• AI Infrastructure: Meta spent $17 billion in Q2 on infrastructure-bringing year-to-date capital expenditures to $31 billion. Full-year capex is expected between $66 billion and $72 billion, with an outlook for over $100 billion in 2025.

• Superintelligence Ambitions: Mark Zuckerberg officially launched Meta Superintelligence Labs, aiming to build self-improving AI models. It’s led by Alexandr Wang, former Scale AI CEO. Investments include a $14.3 billion stake in Scale AI and the hiring of top-tier AI executives.

• Advertising Efficiency: AI-powered ad tools boosted ad impressions, pricing, and performance—helping smaller advertisers scale and driving major revenue growth. META’s operating margin expanded to 43%.

• Open-Source Shift: Meta is adjusting its open-source AI model policy—planning a hybrid strategy to avoid releasing its most advanced models due to safety and competitive concerns

META is testing the upside channel resistance of 785 and looking for a rejection here and a possible correction heading after an earnings report huge gap up, and an overall market sentiment.

For the rally to continue, we need a sustained breakout above 785. A break below 700 could open a test of the next support, 624, in the medium-term.

_{I am taking a near-term short-trade entry with an SL above 820 to target 600. You can buy put options as well.}