Meta Moves Higher on a Fresh Buy Rating
Meta shares climbed after another firm turned bullish. Erath Group came off the sidelines and issued a buy rating, upgrading the stock from a hold. The name has faced challenges this year, and one of the loudest concerns has been its CapEx spending plans. Erath's case for the upgrade rests on confidence that Meta's aggressive AI spending, which the firm openly calls aggressive, will translate into stronger long-term growth.
The reasoning goes further than the spending itself. Erath believes Meta is investing from a position of financial strength rather than scrambling to catch up to rivals. The revenue picture looks strong, with second-quarter revenue projected between 58 and 61 billion dollars. That pace runs well ahead of how many big tech companies are growing. Over the past year, Meta grew revenue 26%, and its gross margin still sits above 80%. Both the fundamentals and the margins point to real strength, which is why the firm was ready to move.
There is a technical detail worth watching. Meta closed just above $600 a share the prior day. That level functions as a line in the sand, and the question is whether investors push higher from there. For now, the move suggests they will.
Meta is not the only Mag 7 name generating headlines. Amazon is seeking to raise at least $25 billion through a bond sale, which keeps the whole group in focus.
Shopify Draws Bank of America Coverage
Shopify got some attention after Bank of America initiated coverage with a buy rating and a $150 price target. The stock has been an underperformer this year. Even with the day's gain, it remains down more than 20% year-to-date, though the picture improves on a year-over-year basis.
Bank of America's thesis centers on where e-commerce heads next. The firm points to AI-powered agentic commerce, where AI assistants do more than recommend products. These agents will actively shop, compare prices, and complete purchases on a person's behalf, acting like a personal online shopper you send off instead of browsing websites yourself.
The key argument is that AI does not erase the human and infrastructure layers underneath a transaction. Even when a purchase starts with AI, someone still has to process the payment, manage inventory, power checkout, and complete the transaction. Those are exactly the services Shopify already provides, which is why Bank of America sees it as a winner in this shift.
That raises a direct question the market has been asking: is AI a friend or a foe for Shopify? Bank of America comes down on the side of friend, and it says early trends already support that view. The AI shopping prompts now surface constantly during online purchases, whether shoppers seek them out or not, which speaks to how embedded this behavior is becoming.
Fiserv Jumps on a Possible Network Sale
Fiserv shares rose on deal potential. Reuters reported that the company is exploring a sale of its Star debit card network, one of the largest debit card infrastructure businesses. That report gave the shares a tailwind on a day when the stock had otherwise struggled, having underperformed the broad market both year-to-date and on a year-over-year basis.
Several caveats apply. No agreement has been reached, and the talks could still fall apart. Whether the discussions count as early stage is unclear.
The strategic weight of the asset explains the enthusiasm. The Star network routes debit card payments, ATM activity, and e-commerce transactions, connecting banks, merchants, and consumers. Every time someone swipes a debit card, this kind of infrastructure sits behind it. The network serves millions of debit card holders and operates across nearly 3,000 financial institutions, making it a significant piece of payment infrastructure.
Fiserv has been working through a difficult turnaround, and a sale of this business could be one piece of that effort. Wall Street clearly likes the possibility. The shares were up about 6%.
