Meta Platforms Inc (NASDAQ:META) is once again in the limelight before its second quarter results today after markets close, but this time it’s not merely stock pickers who are sitting up. Even ETF investors are on high alert, particularly those with exposure via Big Tech and AI-themed ETFs.
With Meta expecting to report its 11th consecutive revenue beat, some high-conviction ETFs may witness substantial movements. Revenues forecasted by the company stand between $42.5–$45.5 billion. Moreover, analysts expect earnings per share of $5.86, up from $5.16 in last year’s second quarter.
META is trading in the upper third of its 52-week range. Check the latest price here.
AI & Big Tech ETFs Surfing On Meta Momentum
- Roundhill Magnificent Seven ETF (BATS:MAGS)
Built to balance equally the so-called Magnificent Seven, MAGS is a condensed bet on the largest U.S. tech giants. Meta represents one-seventh of the fund, providing it with significant clout. As Meta continues to invest billions in AI and automation software such as Advantage+ for advertisers, MAGS finds itself a first choice among investors looking for direct access to the AI-enriched core of U.S. tech. - Invesco QQQ Trust (NASDAQ:QQQ)
Meta is among the top 10 holdings in QQQ, representing more than 3% of the fund. QQQ, which is one of the most liquid and most traded ETFs, normally responds rapidly to an earnings beat or miss from key components. An upbeat Meta report would push QQQ, particularly considering its exposure to other AI leaders such as Microsoft and Nvidia. - Communication Services Select Sector SPDR Fund (NYSE:XLC)
XLC provides one of the cleanest ETF plays on Meta, with the stock representing more than 18% of the fund’s weighting. That’s at the top. For investors directly wagering on Meta’s leadership in social media and digital advertising, XLC offers focused exposure within the larger communication services space.
Also Read: New York Times Gets New AI Partner For $20-$25 Million
What To Watch
Meta’s 2025 capital spending plans, projected at $64–$72 billion and possibly increasing further, are the sign of a full-throated AI buildout. That would render AI-intensive ETFs more vulnerable to Meta’s rhythm on monetization and infrastructure return on investment. Threads, WhatsApp and Business AI products continue to be key focuses for future revenue sources.
ETF investors aren’t riding shotgun; they’re tactically exposed. Be it equal-weight AI exposure in MAGS, tech broad brushes in QQQ or laser-specific Meta allocation in XLC, Meta’s second-quarter results can drive near-term ETF flows and longer-term sector sentiment.
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