On Wednesday, Meta (META.US) shares advanced more than 2% to $592.77. The uptick comes as the company resolved a long-standing lawsuit related to social media, putting an end to a lingering legal uncertainty that had weighed on the stock. Following the settlement, some analysts believe this could pave the way for the tech giant to ramp up the rollout of its artificial intelligence (AI) products.

The legal resolution initially sparked worries among investors that Meta's advertising revenue might take a hit. However, analysts at Morgan Stanley noted that major litigation wrap-ups often encourage tech behemoths to launch innovative products and services. In a research note, the analysts pointed out, "We see several new products in the pipeline at Meta, including MetaClaw/an improved Meta AI, a suite of agentic ad tools for SMBs, a new subscription service, robust API offerings, and neocloud-related options."

According to reports, Meta is slated to introduce its consumer-facing AI agent, Hatch, in early September. The product will be embedded within WhatsApp and Instagram, enabling it to autonomously handle tasks such as online shopping and restaurant reservations.