Meta’s Mojo Check: Can Bulls Find Their Feed Again?

Editor’s note: Any and all references to time frames longer than one trading day are for purposes of market context only, and not recommendations of any holding time frame. Daily rebalancing ETFs are not meant to be held unmonitored for long periods. If you don’t have the resources, time or inclination to constantly monitor and manage your positions, leveraged and inverse ETFs are not for you.

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 stock 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 longer 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 lose 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.

Shares of Meta Platforms (Ticker: META) have lost some of their summer swagger. After hitting an all-time high in August, the stock’s pulled back and is now testing key support. Traders are asking one question: is this the calm before the next leg up—or the start of a trend reversal?

Social Media Dominance and the A.I. Arms Race

Meta has redefined how billions connect, advertise, and interact—and now it’s trying to do the same for artificial intelligence. Its AI-driven algorithms fuel engagement across Facebook, Instagram, and WhatsApp, while its ad platform continues to dominate digital marketing budgets.

Meta’s latest push into generative AI, through its Llama models, could unlock new use cases for creators and advertisers alike. Add in strategic partnerships with AI chipmakers and expansion into AR/VR sunglasses, and Meta is positioning itself at the crossroads of social and machine intelligence.

Bulls point to Meta’s massive cash flow, diversified revenue streams, and proven ability to pivot when sentiment turns negative. If the stock can hold support, traders betting on another leg higher may find opportunity with Direxion’s Daily META Bull 2X Shares (Ticker: METU), which seeks daily investment results, before fees and expenses, of 200% of the performance of Meta Platforms, Inc. common stock (Ticker: META).

Traders that want to position for a rebound in Meta could find an opportunity

Below is a daily chart of META as of October 16, 2025.

Source: TradingView.com

Candlestick charts display the high and low (the stick) and the open and close price (the body) of a security for a specific period. If the body is filled, it means the close was lower than the open. If the body is empty, it means the close was higher than the open.

The performance data quoted represents past performance. Past performance does not guarantee future results.

Social Media Burnout?

Yet not all headlines are bullish. Meta’s core platforms continue to face signs of user fatigue, as global time spent on social media trends lower. Competition from TikTok, Snap, and YouTube remains intense, forcing Meta to invest heavily to sustain engagement and ad efficiency.

The company’s October 29 earnings report delivered mixed takeaways—solid ad revenue growth and resilient margins underscored Meta’s dominance in digital advertising, but cautious forward guidance and rising AI infrastructure costs tempered investor enthusiasm. The results reinforced the tug-of-war between Meta’s near-term spending pressures and its longer-term AI ambitions.

If sentiment continues to cool or guidance remains conservative, traders anticipating a pullback might look to Direxion’s Daily META Bear 1X Shares (Ticker: METD) or tactical downside exposure. METD seeks daily investment results, before fees and expenses, of 100% of the inverse performance in common shares of Meta Platforms, Inc. (Ticker: META) could provide a way to capitalize on some downside price action.

Whether Meta reloads for another breakout or slips further into consolidation, volatility looks here to stay. For active traders, that makes META a prime candidate for tactical moves in either direction — with METU and METD offering amplified or exposure to the next swing.

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