Meta Platforms recently announced a significant multiyear partnership with UFC to enhance global fan engagement, establishing Meta as the Official Fan Technology and AI Glasses Partner. Despite this potentially positive development for the company, Meta's shares have fallen 11.78% over the last week, during a broader market downturn. The decline comes amid widespread concerns over President Donald Trump's announcement of sweeping tariffs, with major indexes like the Nasdaq Composite entering bear market territory, falling 5% last week. The tech sector, including Meta, saw significant declines as economic uncertainty and trade tensions weighed heavily on market sentiment.

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Over the past five years, Meta Platforms achieved a total return of 204.88%, highlighting strong shares performance despite recent market pressures. Through strategic initiatives, Meta enhanced its AI capabilities, focusing on products like Meta AI and Llama 4. This advancement aimed to innovate user engagement and advertising revenue. Additionally, Meta increased its dividend by 5%, reflecting increased profitability with earnings reaching US$62.36 billion in 2024. The company's efforts in expanding its Family of Apps and AI infrastructure played a key role in supporting revenue and EPS growth.

In the past year, Meta's earnings growth of nearly 59.5% surpassed the industry's meagre 0.9% increase, demonstrating resilient performance amid challenges. Meta's engagement in partnerships, such as the UFC collaboration, aligned with its vision to integrate technology broadly. Despite legal challenges, such as the lawsuit concerning youth mental health, Meta maintained robust growth through innovative collaborations and product expansions, anchoring its long-term value and market position. This performance contrasts with the broader market, which showed significantly lower returns.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:META.

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