Meta Jumps on Q2 Earnings Beat: ETFs to Tap

After the closing bell on July 30, Facebook’s parent company Meta Platforms META came up with better-than-expected second-quarter 2025 results, beating estimates on both the top and bottom lines. META shares jumped 12.1% in after-market hours to new all-time highs on elevated volumes as investors were impressed with the company's growing advertising business and a rise in users across its family of platforms.

Investors seeking to tap the growth should consider ETFs with a large allocation to this social media giant. These include Global X PureCap MSCI Communication Services ETF GXPC, Vanguard Communication Services ETF VOX, Fidelity MSCI Communication Services Index ETF FCOM, iShares Global Comm Services ETF IXP and Communication Services Select Sector SPDR Fund XLC.

Earnings in Focus

Adjusted earnings per share came in at $7.14, topping the Zacks Consensus Estimate of $5.83 and increasing 38% from the year-ago quarter. Revenues grew 22% year over year to $47.5 billion and came above the estimated $44.84 billion. 

Most of the growth was attributable to Meta’s AI advancements in its advertising offerings, such as smarter ad recommendations and campaign automation. Currently, over 4 million advertisers use the AI-powered Advantage+ campaigns, achieving a 22% improvement in returns. Building on this success, Meta plans to enable brands to fully create and target ads using AI by the end of 2026 (see: all the Communication ETFs here).

Meta’s global daily active users on at least one of the family of services (Facebook, WhatsApp, Instagram or Messenger) increased 6% year over year to 3.48 billion as of June. The world’s largest social media platform projects revenues in the range of $47.5-$50.5 billion for the third quarter. 

Meta raised its 2025 capital expenditure guidance to $66-$72 billion, up from the prior outlook of $64-$72 billion. This increase reflects the company’s aggressive investments in AI infrastructure and technical talent. Among these efforts, Meta is investing hundreds of billions of dollars in building large-scale AI data centers, including a flagship facility named Hyperion, which will eventually scale to 5 gigawatts of capacity. Additionally, Meta is expanding into AI-powered wearable technology. It already offers Ray-Ban Meta smart glasses and recently introduced Oakley Meta glasses. The company is developing standalone AI glasses to further its ambitions in the space, opening up new pathways for AI-driven revenues.

ETFs in Focus

Global X PureCap MSCI Communication Services ETF (GXPC) 

Global X PureCap MSCI Communication Services ETF seeks to provide uncapped, market capitalization exposure to the Communication Services sector by tracking the MSCI USA Communication Services Index. It holds 24 securities with Meta occupying the top spot at 28.4% shares. Global X PureCap MSCI Communication Services ETF has accumulated $0.3 million in its asset base since its debut last week and charges 15 bps in fees per year.

Vanguard Communication Services ETF (VOX)

Vanguard Communication Services ETF also targets the communication sector by tracking the MSCI US Investable Market Communication Services 25/50 Index. Holding 118 stocks in its basket, Meta Platform takes the top spot with a 23.9% share. Vanguard Communication Services ETF has AUM of $5.3 billion and trades in a good volume of 233,000 shares a day, on average. It charges 9 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: ETFs to Soar Post Alphabet's Strong Q2 Earnings Results).

Fidelity MSCI Communication Services Index ETF (FCOM) 

Fidelity MSCI Communication Services Index ETF follows the MSCI USA IMI Communication Services 25/50 Index. It holds 105 stocks in its basket, with Meta Platforms occupying the top position at 23.9%. Fidelity MSCI Communication Services Index ETF has amassed $1.6 billion in its asset base and trades in an average daily volume of 108,000 shares. It charges 8 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.

iShares Global Comm Services ETF (IXP) 
 
iShares Global Comm Services ETF provides global exposure to companies in media, entertainment, social media, search engine, video/gaming and telecommunication services by tracking the S&P Global 1200 Communication Services 4.5/22.5/45 Capped Index. It holds 69 stocks in its basket, with Meta Platforms taking the top spot at 21.8% share. iShares Global Comm Services ETF has amassed $544.3 million in its asset base while trading at an average daily volume of 16,000 shares. The expense ratio is 0.41%. IXP has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.

Communication Services Select Sector SPDR Fund (XLC) 

Communication Services Select Sector SPDR Fund offers exposure to companies from telecommunication services, media, entertainment and interactive media & services and has accumulated $23.7 billion in its asset base. It follows the Communication Services Select Sector Index and holds 23 stocks in its basket, with Meta Platforms occupying the top position at 18.1% share. Communication Services Select Sector SPDR Fund charges 8 bps in annual fees and trades in an average daily volume of 5.4 million shares. It has a Zacks ETF Rank #1.
 

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