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Why Meta Stock Is Climbing Higher Today

What happened

Shares of Meta Platforms (NASDAQ: META) were rising this morning on no company-specific news. Instead, Meta investors may be pushing the stock higher as tech investors extend their recent optimism from last week.

Investors may also be optimistic about Meta this morning as Congress begins to run out of time to pass an antitrust bill aimed at large technology companies.

Meta's stock was up by 3.1% as of 11:34 a.m. ET.

So what

The Wall Street Journal reported this morning that a bipartisan bill aimed at large technology companies may not have enough time to receive a vote as Congress gets closer to its recess.

Image source: Getty Images.

The bill targets technology companies with large platforms that give preferred treatment to a company's own products and services. While the legislation has the potential to impact other tech companies more than Meta -- including Amazon and Apple -- Meta is still part of a group of large tech companies fighting the bill.

With the midterm elections happening in November, it's possible the bill could lose support if Republicans win additional congressional seats, according to the Journal.

In addition to that news, Meta investors are likely extending some of their optimism for the stock today after the technology sector rallied a bit last week. The tech-heavy Nasdaq Composite climbed 2% last week, extending its gains to 10% over the past month.

While Meta faces some headwinds right now, particularly in a slowing advertising market, investors have recently increased some of their optimism after a better-than-expected jobs report issued last week gave investors hope that a significant economic slowdown may not be inevitable.

Now what

While Meta's gains today are clearly a welcomed change from the 52% share price decline the tech stock has experienced over the past 12 months, investors may want to brace for more volatility.

While the latest jobs report was good, it doesn't mean the economy still won't show signs of slowing down. It's also possible that Meta and other tech companies will have to face an antitrust bill in the near future.

All of which means that Meta investors may want to temper some of their optimism today.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Amazon, Apple, and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.


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