META Rises Amid Tech Decline, Trump's AI Order Praised By Analyst

The last few months of 2025 haven’t brought what investors in Meta Platforms (NASDAQ: META) hoped for. Through late October, shares were up around 28% on the year. Since then, the stock has given back around half those gains, and is now up only 14% (as of the Dec. 18 close).

However, investors may take some solace in the stock’s recent performance. Amid a significant tech stock sell-off, catalyzed by the earnings of Oracle (NYSE: ORCL) and Broadcom (NASDAQ: AVGO), Meta has been resilient.

Since Oracle reported earnings after the Dec. 10 close, Meta shares are up around 2%.

This compares to the approximately 4.3% drop in the Technology Select Sector SPDR Fund (NYSEARCA: XLK), which investors commonly use to gauge the general performance of technology stocks in the S&P 500.

One positive development for Meta, even while the tech sector struggles, comes courtesy of President Trump. Let’s dive into the President’s recent executive order on artificial intelligence (AI) and decipher what it means for Meta Platforms. 

Trump Pushes for National Framework on AI Regulation

On Dec. 11, President Trump signed an executive order titled “Ensuring a National Policy Framework for Artificial Intelligence." The main objective of this order is to establish a nationwide regulatory framework around AI. Specifically, the President wants to limit the extent to which states can enforce excessive and onerous AI laws.

From the outset, it is clear why such a framework would be a positive for Big Tech companies like Meta. The potential of having to comply with 50 different legal AI frameworks (one for each U.S. state) could create significant issues. These include compliance costs and a limited ability to innovate, making it more difficult to generate a strong return on AI investments.

David Sacks, the White House’s AI and Crypto czar, highlighted the surge in state AI regulation. He said, “We have over 1,000 bills going to state legislatures right now to regulate AI; over 100 of them have already passed." He said some of these laws are contradictory, creating a confusing patchwork of AI regulations.

No national legal standard on AI currently exists. The President is pushing for Congress to sign one into law. Until then, the President has directed the U.S. Attorney General to establish an AI Litigation Task Force. Its purpose will be to challenge state laws that conflict with the policy of sustaining and enhancing the “United States’ global AI dominance."

Notably, Wedbush analyst Dan Ives believes the order is a “major win” for Big Tech companies like Meta. He sees the order as a “necessary move” to limit China’s ability to catch up in the AI race.

Fostering Innovation: A Double-Edged Sword for Big Tech

Despite the apparent upside, the executive order could pose competitive risks. The administration’s framing of the regulation aims to help startups, who often struggle to navigate complex legal environments.

Oftentimes, large companies prefer a certain level of regulation, as they have the cash flows to absorb the costs of compliance. Meanwhile, regulation can create barriers that are hard for pre-profit startups to overcome. In this sense, Trump's order could do away with a regulatory moat that protects large firms from smaller competition.

Nevertheless, with massive market share and deep AI investments, Meta and other Big Tech firms likely prefer fewer legal obstacles to maintain innovation velocity.

Federal vs. State Powers Still Uncertain

One complication is the question of legal authority. Republican Governor of Florida, Ron DeSantis, argues that only Congress can prevent states from passing their own laws.

This could limit the immediate effectiveness of the executive order and prolong legal disputes over AI jurisdiction.

META Stock Resilient Amid Broader Tech Declines

Trump signed the order after the market closed on Dec. 11. The next day, Meta shares fell only 1.3%, outperforming the nearly 3% drop in XLK. It’s possible the AI order aided this relative resilience in Meta shares. Still, noise from Broadcom’s 11.4% post-earnings fall that day makes it difficult to assess the market’s true reaction.

It will be interesting to see if Congress passes an overarching regulatory framework around AI, and the implications it will have for Big Tech. Such a law could significantly affect the outlook on Meta Platforms' stock.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

The article "META Rises Amid Tech Decline, Trump's AI Order Praised By Analyst" first appeared on MarketBeat.