Only Meta Platforms Inc. has outperformed the S&P 500 and Nasdaq 100 indices in 2025 because it is “less leveraged,” as compared to the other ‘Magnificent 7’ stocks, explains an analyst.
While Meta, led by Mark Zuckerberg, continues to be an investor favorite, it is also undervalued as compared to its peers.
What Happened: The high interest rate environment in 2025 has kept the technology mega caps under pressure, according to John Murillo, the chief dealing officer at B2BROKER.
“Many tech companies, especially those with high leverage, are particularly susceptible to changes in interest rates,” said Murillo, adding that the Federal Reserve’s current stance has been impacting these companies’ profitability and valuations.
He also highlights that the current U.S. administration’s tariff policies, particularly targeting China, have created uncertainties in global trade, risking increasing costs for tech companies and affecting their earnings.
Thus, investors have grown increasingly skeptical about …
