Why Meta Platforms' stocks outperformed the market today

GasFeeVictim

2025-10-19 01:03:14

Key Points

A recent high-profile court ruling bodes well for the social media titan.
It also benefited from a new analytical report on tech companies that should take advantage of artificial intelligence.

Investor sentiment towards Meta Platforms (NASDAQ: META), along with other major tech sector stocks, was quite positive on Thursday. Many of these companies basked in the glow of what was perceived as a significant victory for Alphabet in an antitrust case brought by the federal government.

In addition, a prominent researcher pointed to Meta as one of the best-positioned stocks in the sector to take advantage of the artificial intelligence revolution (IA). With these tailwinds, Meta's shares recorded a gain of 1.6% on the day, almost exactly double the percentage increase of the S&P 500 index.

Favorable ruling

U.S. District Judge Amit Mehta for the District of Columbia ruled that Google, the core business of Alphabet, does not need to be broken up with the sale of its web browser Chrome. Although the ruling requires the company to share some of its data with certain competitors, among other minor punitive measures, it is far from the corporate breakup that the government sought in the antitrust lawsuit.

This was a relief not only for Alphabet and its numerous shareholders but also for other tech giants that have felt the intense gaze of federal regulators. Meta, the owner of the fundamental social network Facebook, Instagram, and the popular messaging service WhatsApp, seemed to many to be a juicy target.

Although there is no guarantee that regulators will abruptly halt their scrutiny and persecution of big tech companies, the ruling against Alphabet makes this perspective significantly less likely. It is not surprising that investors continued to breathe a sigh of relief in light of this latest development.

A side bet on AI

Meanwhile, one of the most followed researchers in the tech industry named Meta as a top choice to capitalize on a sweeping trend.

On Thursday morning, Wedbush Securities published a new analysis, broken down by categories, on what it considers the number one stocks that will benefit from the frenzied adoption of artificial intelligence features. Meta was named as “the consumer AI company set to dominate the landscape.”

I find it fascinating how Meta has managed to reposition itself after years of controversy. The ruling against Google reflects the growing judicial resistance to dismantling these digital empires, which I personally find concerning for real competition. The label of “dominant in AI for consumers” sounds more like a marketing strategy to me than a technological reality, considering that its implementation of AI is still in its infancy compared to other giants. Perhaps investors are more in love with the narrative than with real progress in this field.

Disclaimer: For informational purposes only. Past performance does not indicate future results.

Why Meta Platforms' stocks outperformed the market today

Key Points

Favorable ruling

A side bet on AI

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