Why Meta Platforms' stocks outperformed the marketplace today

Source: The Motley Fool

Sep 4, 2025 23:24

Key Points

• A recent high-profile court decision bodes well for the social media giant.
• It was also driven by a new analytical report on technology companies that are expected to benefit from the adoption of artificial intelligence.

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

Additionally, a prominent researcher pointed to Meta as one of the best-positioned stocks in the sector to capitalize on the AI revolution (AI). With these favorable winds, Meta’s shares gained 1.6% for the day, nearly doubling the percentage increase of the S&P 500 index.

Favorable Ruling

U.S. District Court Judge Amit Mehta of the District of Columbia ruled that Google, Alphabet’s core business, does not need to be broken up by selling its Chrome browser. 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 business breakup sought by the government 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 scrutiny of federal regulators. Meta, owner of Facebook, Instagram, and WhatsApp, appeared to many as a tempting target.

While there’s no guarantee that regulators will abruptly halt their scrutiny and pursuit of big tech, Alphabet’s ruling makes this possibility significantly less likely. It’s no surprise that investors continued to breathe a sigh of relief following this latest development.

A Sideliner Bet on AI

Meanwhile, one of the most-followed industry analysts named Meta as a top pick to benefit from an overwhelming trend.

On Thursday morning, Wedbush Securities released a new, categorized analysis of what it considers the leading stocks set to benefit from the feverish adoption of AI functionalities. Meta was named “the consumer AI company destined to dominate the landscape.”

Image source: Getty Images

Eric Volkman does not hold positions in any of the mentioned stocks. The Motley Fool has positions in Alphabet and Meta Platforms.

Disclaimer: For informational purposes only. Past performance is not indicative of future results.

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