META Resilient: Trump’s AI Order Boosts Big Tech
META Stock Holds Steady as Trump Executive Order Supports Big Tech
Meta Platforms shares have demonstrated notable resilience in recent trading sessions, even as the broader technology sector experiences a pronounced downturn. This stability comes amid President Trump’s recent executive order aimed at bolstering the United States’ leadership in artificial intelligence, a move that analysts view favorably for major technology firms.
The final months of 2025 have presented challenges for investors holding Meta Platforms (NASDAQ: META) stock. Earlier in the year through late October, the shares had climbed approximately 28%. However, subsequent market pressures have erased about half of those gains, leaving the stock up roughly 14% as of the December 18 closing bell.
Meta Platforms Today
META $658.77 -5.68(-0.85%)
As of 12/19/2025 04:00 PM Eastern
52-Week Range $479.80 – $796.25
Dividend Yield 0.32%
P/E Ratio 29.10
Price Target $818.59
Nevertheless, recent performance offers some encouragement. During a sharp sell-off in technology stocks—sparked by disappointing earnings from Oracle (NYSE: ORCL) and Broadcom (NASDAQ: AVGO)—Meta has shown relative strength. Since Oracle’s post-market earnings release on December 10, Meta shares have actually gained around 2%.
In contrast, the Technology Select Sector SPDR Fund (NYSEARCA: XLK), a popular benchmark for S&P 500 tech stocks, has declined by about 4.3% over the same timeframe.
Trump Pushes for National Framework on AI Regulation
On December 11, President Trump signed an executive order entitled “Ensuring a National Policy Framework for Artificial Intelligence.” The core goal is to create a unified national approach to AI oversight, specifically curbing states’ abilities to impose overly burdensome regulations.
This development is particularly beneficial for large technology companies like Meta, as navigating 50 distinct state-level AI regulations would impose substantial compliance expenses and hinder innovation efforts, ultimately impeding returns on significant AI investments.
David Sacks, serving as the White House’s AI and Crypto advisor, pointed out the explosion of state-level AI legislation, noting over 1,000 bills under consideration and more than 100 already enacted. Many of these create conflicting requirements, resulting in a fragmented regulatory landscape.
Currently, no comprehensive federal AI standard exists. The President is urging Congress to establish one. In the interim, he has instructed the U.S. Attorney General to form an AI Litigation Task Force to contest state laws that undermine America’s global AI leadership.
Wedbush analyst Dan Ives describes the order as a “major win” for Big Tech players including Meta. He views it as an essential step to prevent China from closing the gap in the AI competition.
Fostering Innovation: A Double-Edged Sword for Big Tech
While the order presents clear advantages, it may also introduce competitive challenges. The administration emphasizes supporting startups, which frequently face difficulties in complying with intricate regulations.
Established giants like Meta often favor moderate regulation, given their robust cash flows to handle compliance. Regulations can act as barriers for emerging, pre-profit companies. Thus, this order might erode the protective moat that larger firms enjoy against nimbler rivals.
That said, Meta’s dominant market position and substantial AI commitments position it well to capitalize on reduced regulatory hurdles, accelerating its pace of innovation.
Federal vs. State Powers Still Uncertain
A key uncertainty revolves around legal authority. Florida Governor Ron DeSantis contends that only Congress holds the power to restrict states from enacting their own AI laws.
This perspective could diminish the order’s short-term impact, potentially extending legal battles over AI regulatory jurisdiction.
META Stock Resilient Amid Broader Tech Declines
The executive order was signed after markets closed on December 11. The following day, Meta shares dipped just 1.3%, far better than the nearly 3% plunge in XLK. The order may have contributed to this outperformance, though Broadcom’s sharp 11.4% post-earnings drop introduces some ambiguity in gauging the precise market response.
Looking ahead, whether Congress enacts a comprehensive AI regulatory framework—and its effects on Big Tech—will be crucial. Such legislation could profoundly shape the investment thesis for Meta Platforms stock.
Key Points
- Shares of Meta Platforms have risen recently despite a general sell-off in technology stocks.
- As states are passing and proposing AI regulations, President Trump signed an AI executive order to secure the United States’ “AI dominance.”
- Governments continue to flesh out AI regulation, making this a key area for investors to watch.
