The parent company of Facebook and Instagram continues to exceed expectations for ad sales. Analysts are less sure about its big swings.

Investors continue to underestimate artificial intelligence (AI), the secular tailwinds behind the chipmaker's supercharged growth.

Meta Platforms also reported earnings after Wednesday’s close. Coming into the earnings, the option market had priced the straddle at 42 points, or 6% of the stock price. That straddle price was cheaper than six of the past 10 post-earnings moves by Meta — meaning that the odds were theoretically slightly in favor of buying the straddle.

If the company’s core business continues growing at the current rate and its Superintelligence efforts gain traction, “there’s no telling what the ceiling is for Meta,” Bernstein analysts said.

The S&P 500 rose 0.5% and is just above the record high it set on Monday. The Dow Jones Industrial Average was mostly unchanged as of 12:01 p.m. Eastern.

And both Meta and Microsoft were already on track to spend more than 30% of this year’s revenue on capital expenditures, compared with about 15% to 20% historically. Those outlays were already beginning to look like mere table stakes after Google parent Alphabet used its report last week to bump up its own capex spending plans for this year to $85 billion.