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

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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.

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; and the dual class structure of the company’s common stock, which limits the ability of shareholders to influence corporate matters.

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, Industry Concentration Risk, Market Risk, Indirect Investment 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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