Analyst Sees Meta Shares Positioned for 'Powerful Breakout' Into 2027

Meta Platforms could be positioned for what one options trader described as a "powerful breakout" heading into 2027, according to comments from Mike Khouw reported by CNBC.

Khouw pointed to strength in Meta's hardware business as a key factor supporting the bullish outlook, describing the company's product funnel as a driver of growth alongside its core advertising operations. He also highlighted the options market's current pricing, noting that short-term premiums on Meta contracts appear elevated, which he said creates an opportunity for a specific trading strategy designed to take advantage of both the potential price move and the options pricing dynamics.

What the Strategy Involves

While specific trade structures in options strategies commonly combine buying and selling contracts at different strike prices to balance cost against potential payoff, the report did not detail the exact structure Khouw recommended, such as the strike prices or expiration dates involved. The core thesis, as described, rests on the combination of anticipated share price appreciation and the chance to offset the cost of that bet using premium collected from richly priced short-term options.

Meta has drawn significant investor attention in recent periods over its investments in artificial intelligence infrastructure and hardware, including its efforts in virtual and augmented reality devices, alongside its continued dominance in digital advertising through Facebook and Instagram.

The comments reflect one trader's view rather than a consensus market forecast, and options-based strategies carry their own risks, including the potential for losses if the anticipated price movement does not materialize within the relevant timeframe. Investors were not given specific price targets in the reported remarks.