Meta Platforms, Inc. has surged nearly 30% since late March, but options positioning and technicals suggest downside risk post-earnings. Despite strong Q1 revenue growth expectations, META's earnings growth is muted, and operating expenses plus CapEx are set to rise sharply by 2026. Implied volatility is elevated, and options are skewed bullish, setting the stage for a volatility collapse and potential sharp stock drop after results.
China's top economic planner, the National Development and Reform Commission (NDRC), said on Monday it has blocked Meta's $2 billion acquisition of Manus, an agentic AI startup founded by Chinese engineers that relocated to Singapore before Mark Zuckerberg scooped it up late last year.
The Facebook parent has agreed to purchase up to a gigawatt of solar power from Overview Energy, a startup that aims to deploy satellites capable of providing power to customers on Earth's surface.
Late April will see a string of the world's largest companies report financial results. This includes tech giant Meta Platforms NASDAQ: META, as well as other members of the Magnificent Seven.
Meta Platforms' $2.5 billion deal for Manus looks to have fallen victim to U.S.-China tensions.
The Chinese government has halted Meta's $2 billion acquisition of artificial intelligence (AI) startup Manus. China's National Development and Reform Commission announced Monday (April 27) that it would “prohibit foreign investment in the Manus project,” and required the companies to “withdraw the acquisition transaction.
According to the Wall Street Journal, early versions of Manus were developed by the Chinese startup Beijing Butterfly Effect Technology, founded in 2022. After its launch last year, the AI startup relocated its top engineers and headquarters from Beijing to Singapore, joining several other Chinese firms in doing so.
China has moved to block Meta Platforms Inc.'s planned $2 billion acquisition of agentic AI startup Manus, in a surprise decision that effectively unwinds a deal already close to completion. The intervention marks a significant escalation in Beijing's oversight of strategic technology transactions, particularly those involving artificial intelligence and cross-border investment.
The race to secure electricity for AI models has reached new heights: Meta has signed an agreement with the startup Overview Energy that could see a thousand satellites beam infrared light to solar farms that power data centers at night.
Meta Platforms on Monday suffered a setback as a deal to acquire a company focused on autonomous artificial intelligence products was blocked.
Beijing has banned the $2.5 billion acquisition and ordered the parties involved to rescind the transaction.
China's state planner asked both parties involved to withdraw the acquisition transaction. The deal has garnered scrutiny from both China and Washington.