Meta stock: Why Zuckerberg's company is winning despite the drama

The disconnect

Mark Zuckerberg just finished his Meta Connect keynote, and if you watched, you’d think the company was purely an AI startup. In a nearly hour-long presentation, Zuck didn't even mention Facebook or Instagram—the bread and butter that made Meta a $2 trillion powerhouse. Instead, he leaned into the "love" of building, hyping up his new AI agent, Muse, along with smart glasses and a wrist-worn AI wearable.

The legal heat

Real talk: the vibes are off. Meta is deep in a series of lawsuits alleging their apps are designed to be addictive, specifically harming younger users. We're talking about internal emails and whistleblower testimony being used by prosecutors across the country. Plus, a Pew Research Center poll shows two-thirds of Americans hold an unfavorable view of Zuckerberg. To make matters worse, a new film, The Social Reckoning, is painting him as a "full-on villain."

The bill is coming due, too. Meta recently settled for $18 billion with 48 U.S. states to resolve child safety allegations without admitting wrongdoing. Other payouts include a $9 million settlement with a Kentucky school district and a massive $942 million fine from a New Mexico lawsuit, which the judge labeled a "public nuisance." Meta is appealing, but the pressure is high.

Why the money printer won't stop

Here’s the thing: despite the "Big Tobacco" level of scrutiny, Meta is lowkey thriving. User numbers for Instagram and WhatsApp are up 3% year-over-year, and Q2 revenue grew 28% compared to 2025. Wall Street sees the $18 billion settlement as a total W, because it shielded execs from testifying and prevented more messy internal documents from hitting the public eye. Meta’s stock jumped 4% on the news and is up 25% this month alone.

The AI pivot

Zuck is betting big on Muse, the first AI agent from a major tech player that can handle multi-stage tasks. It can do the heavy lifting—like calling insurance companies or tracking your spending—but there’s a catch. To make Muse work, you have to hand over massive amounts of personal data, including credit card info and emails. Whether people will trust a company with a shaky privacy track record to manage their life is the ultimate stress test.

Why it matters

Meta has learned that public distaste doesn't always translate to lower usage. As long as the products deliver value, the stock price keeps climbing, proving that even with a massive trust deficit, the company remains a dominant player in the attention economy.