Meta stock surges 4.77% on new AI search tool

What happened

Meta Platforms announced a new artificial intelligence tool for Facebook that expands search, editing, and content-creation options. The stock closed at $593.39 on Monday, up 4.77%, reversing a six-session decline.

Why it matters

Meta's advertising business and user base continue to support its longer-term growth case, according to some analysts. However, the company has faced investor pressure since April over a softer forward outlook and a larger capital-spending plan tied to higher component prices and rising data-center costs.

What to watch

Meta remains down about 10% for the year, underperforming the S&P 500, which has gained nearly 9%. The stock had declined nearly 2% over the past month before this rebound.