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Make Meta Marvelous With This Income ETF

On news that the company is planning to raise $95 billion to fund artificial intelligence (AI) spending, including a $35 billion stock offer, shares of Meta Platforms (META) have been walloped in recent weeks, shedding more than 16% over the past month. Declines of more than 10% mark a correction. With the social media stock residing 19.14% below its 52-week high, Meta is ominously flirting with a bear market. But it doesn’t mean that this Magnificent Seven giant will slump forever. There are options for investors who want to be involved with Meta today and still be compensated for doing so. This includes the Direxion META Defined Income Boost ETF (MEIB). Launched in late July, MEIB may offer an ideal avenue for investors who want to nibble at embattled Meta in the near term. Market participants are applying closer scrutiny to AI expenditures. With Meta paying a barely noticeable dividend, MEIB may be that much more attractive. Especially when alternative income is top of mind for many investors.Some Silver Linings for Meta StockDespite concerns over AI spending, neither Meta stock nor MEIB is a lost cause. In fact, there are several good reasons to examine the Direxion ETF right now. “It is becoming increasingly clear that Meta’s investments in AI are yielding ever-increasing returns for advertisers, which in turn is supporting not only top-line durability, but, in fact, advertising revenue growth acceleration,” wrote Deutsche Bank analyst Benjamin Black last week. “Moreover, by leveraging LLM-oriented AI infrastructure, Instagram and Facebook hit all-time-highs in engagement, while the company’s ad systems continued to drive conversion improvements supporting monetization efficiency.” Indicating that MEIB may be a good place to generate some income over the coming months, much of Wall Street remains constructive on the internet stock. Black rated it a “buy” with an $840 price target, implying substantial upside from the October 26 close at $630.56. Something else for prospective MEIB investors to ponder: Meta is in fact generating solid returns on advertising-related investments, indicating that its core business remains a credible buffer as broader AI spending accelerates. “Meta’s capital investments are having strong returns in terms of engagement and ad performance, which is translating to Meta’s current durable advertising revenue growth,” added Black. “This is simultaneously affording Meta the ability to launch its suite of agents (business and consumer) that are scaling in adoption, while also becoming a leading player on the frontier with optionality within hardware.” For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.

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