Meta Platforms Outperforms Rivals Amid High Interest Rate Challenges

Meta Platforms Inc. stands out by outperforming the S&P 500 and Nasdaq 100 indices in 2025 due to its lower leverage, according to an analysis.

Under the leadership of Mark Zuckerberg, Meta remains a favorite among investors while being perceived as undervalued compared to its peers.

Impact of Interest Rates on Tech Stocks

The current high interest rate environment has created pressure for technology mega caps in 2025, as noted by John Murillo, chief dealing officer at B2BROKER.

“Many tech companies, particularly those with high leverage, are especially vulnerable to changes in interest rates,” said Murillo. He emphasized that the Federal Reserve’s current policies are impacting profitability and valuations within the sector.

He also pointed out that the U.S. administration’s tariff policies, especially against China, are introducing uncertainties in global trade. These developments risk rising costs for tech firms and consequently affect their earnings.

Consequently, investors are becoming more cautious about the high-tech index’s performance in 2025, particularly due to weaker projections amid high interest rates and inflationary pressures derived from Donald Trump‘s tariffs, according to Murillo.

“At this time, investors are inclined to favor less leveraged tech stocks like Meta, recognizing that loan repayments can significantly reduce net profits,” he remarked.

Performance Comparison of Major Tech Stocks

Why It Matters: Meta’s stock has increased by 4.41% year-to-date, in stark contrast to the SPDR S&P 500 ETF Trust, which has seen a decline of 1.49%. Furthermore, the Invesco QQQ Trust, linked to the Nasdaq 100, has decreased by 3.61% during the same period.

According to Benzinga Pro data, Meta’s long-term debt amounts to $28.826 billion, presenting a debt-to-equity ratio of 0.269. This indicates a robust capacity to manage its debt obligations.

Stocks	Long Term Debt	Debt-To-Equity Ratio	YTD Performance
Nvidia Corporation NVDA	$8.463 Billion	0.129	-18.52%
Apple Inc. AAPL	$83.956 Billion	1.45	-1.96%
Microsoft Corp. MSFT	$39.722 Billion	0.206	-6.04%
Amazon.com Inc. AMZN	$52.623 Billion	0.458	-9.52%
Alphabet Inc. GOOGL GOOG	$10.833 Billion	0.078	-7.81%
Meta Platforms Inc. META	$28.826 Billion	0.269	4.41%
Tesla Inc. TSLA	$5.535 Billion	2.025	-30.75%

In contrast, Elon Musk‘s Tesla has experienced the most significant downturn in 2025, plummeting by 30.75% since the beginning of the year.

Current Stock Trends

Price Action: Meta closed down 0.36% at $625.66 on Friday. Over the past year, the stock has appreciated by 29.38%.

Benzinga reports that 43 analysts have set an average price target of $731.76 for the stock, indicating a “buy” recommendation. These estimates vary from a low of $575 to a high of $935. Recent analyses from Tigress Financial, UBS, and Citigroup average around $833.67, suggesting a potential upside of 35.34%.

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