As of December 18, Meta Platforms Inc. (NASDAQ: META) has seen its stock rise only 14% for 2025, a reduction from a peak increase of 28% earlier in the year. This decline occurred amidst a broader tech sell-off, where the Technology Select Sector SPDR Fund (NYSEARCA: XLK) dropped approximately 4.3% after Oracle’s earnings report on December 10. Despite the downturn, Meta’s shares increased by around 2% following Oracle’s earnings announcement.
On December 11, President Trump signed an executive order aimed at establishing a national regulatory framework for artificial intelligence (AI), which could benefit Major Tech firms like Meta by potentially alleviating the compliance burden of varying state laws. Over 1,000 bills regulating AI are currently in state legislatures, with more than 100 already passed, creating a patchwork of legal challenges. Trump’s order could serve as a pivotal moment for Big Tech in maintaining its competitive edge against global rivals, particularly in the AI sector.
Following the executive order, Meta shares fell 1.3% the next day, outperforming the nearly 3% drop in the XLK fund, suggesting that the order may have provided some degree of market resilience. However, the efficacy of the executive directive may be complicated by differing interpretations of legal authority, as Republican Governor of Florida Ron DeSantis contends that only Congress can effectively prevent states from enacting their own AI laws.
