“Wow, Meta’s stock price is still pretty high” (Chip Somodevilla/Getty Images)

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Meta is clinging to its 7% gain, as the only Big Tech stock that’s up this year

Tesla and Nvidia have led Big Tech lower, but Meta is holding on to some of its 2025 gains after a remarkable 20-day green streak earlier this year.

David Crowther

3/10/25 9:08AM

Last week, the Nasdaq Composite Index finally crossed into correction territory, having dropped more than 10% from its previous peak, as the AI trade reversal, tariff turmoil, and growing concerns about an economic slowdown weighed on markets. Collectively, Big Tech stocks have shed their postelection gains, with all of the BATMMAAN stocks now in the red for 2025... except for Meta.

Though Mark Zuckerberg’s company certainly hasn’t been immune to the sell-off, it still has some precious gains to hold onto, after a 20-day green streak earlier this year.

So why has Meta outperformed?

On the surface, it’s not immediately obvious why the company behind Facebook, Instagram, and WhatsApp managed to outpace its rivals so strongly in the first six weeks of this year. Like its peers, Meta is shelling out insane dollar sums on AI infrastructure, with plans to spend a whopping $65 billion this year, while its VR and AR division (Reality Labs) is still burning cash like there’s no tomorrow. With all of the usual caveats — we never really know why any stock does anything — here are a few possible reasons:

TikTok sale or ban: Though it’s taken a back seat after President Trump signed a 75-day delay via executive order, the potential sale/ban of one of Meta’s chief rivals for American doomscrolling could be propping up the stock. On Sunday, Trump said the US was talking to four different groups about the potential sale of TikTok.
The fundamentals: Meta crushed its earnings, posting Q4 revenue that was up 21% and net income that had risen 49%.
Tariffs: Companies like Amazon, Tesla, Apple, Nvidia, and Broadcom all sell more physical stuff and rely on complicated global supply chains, which could be impacted by the escalating US trade wars. Meta’s core money-spinner remains digital advertising, which might be indirectly affected — advertisers from China might be less likely to buy an Instagram ad if they face tariffs on any goods they sell, for example — but would potentially avoid the direct hit of escalating tariffs.
AI monetization road map: As my colleague Jon Keegan put it, this year is all about hitting a billion Meta AI users. Next year will be all about monetizing them.
Endless efficiency era: Zuckerberg has been ruthlessly focused on keeping his workforce lean, with the company reportedly planning to fire 5% of its workforce this year. Indeed, on a “profit-per-employee” metric, Meta ranked second behind Nvidia.
Political cover: After cozying up to the new administration, investors might be expecting a more favorable regualory landscape over the coming years — with Meta successfully stopping legislation “that would have regulated social media for the first time” in December 2024, per Politico.

Matt Phillips12h

Nasdaq Composite enters correction territory, joining small-cap Russell 2000

The Nasdaq Composite closed down 10.9% from its high of 24,019.99 — reached during intraday trading on October 29 — putting the tech-heavy benchmark conclusively into a “correction.”

A correction is Wall Street’s term of art for a sell-off that’s graver than a garden-variety slump, but not quite as dire as a bear market. (A bear market commences when prices are down 20% from a peak.)

While the proximate cause in the Nasdaq turndown seems to be t he war — the Composite is down more than 5% since the start of the conflict on February 28 — it’s worth noting that the index had been stalled out for three months prior to that.

At least Nasdaq investors aren’t alone: the small-cap Russell 2000 slipped into a correction last Friday. The S&P 500 has held up better, relatively speaking, though it, too, is down more than 7% from its intraday high of 7,002.28, which it touched on January 28.

Markets sell off as Mideast conflict shows no sign of ending

The S&P 500, Nasdaq 100, and Russell 2000 all fell while oil rose.

Toby Bochan12h

Max Knoblauch15h

Hertz and Avis Budget appear to be benefiting as travelers balk at airport wait times

As the Department of Homeland Security shutdown drags on, resulting in some excruciating airport wait times, rental car companies Avis and Hertz are seeing a boost.

Both companies are up more than 10% on Thursday, continuing a weeklong trend of trading momentum. From market close on March 20 to midday Thursday, Avis shares are up about 44%, while Hertz shares are up 24%.

Would-be flyers may be pivoting from sky to highway, even as gas prices climb. According to TravelPulse, search traffic for Hertz is up 15% in recent days.

The TSA is experiencing the longest wait times in its 24-year history, officials have said. Airfares rising as jet fuel prices remain elevated is likely adding to travelers’ decision.

Hertz Reports Spike in Car Rental Searches as US Airports Deal With Long TSA Lines

Would-be flyers may be pivoting from sky to highway, even as gas prices climb. According to TravelPulse, search traffic for Hertz is up 15% in recent days.

The TSA is experiencing the longest wait times in its 24-year history, officials have said. Airfares rising as jet fuel prices remain elevated is likely adding to travelers’ decision.

Saleah Blancaflor15h

US gas prices increase $1 in 1 month as markets expect $4 per gallon in coming days

As gas demand remains on the rise in the midst of spring break season and crude oil prices rise as hopes the Iran war will draw down decrease, gas prices have steadily risen.

According to the American Automobile Association, the national average price for a gallon of regular gas is up $0.10 from the previous week and up $1 since last month. AAA reports that there was a steep rise from $2.98 on February 26 to $3.98 as of March 26.

AAA said that average gas prices could hit $4 per gallon in the next few days, which would mark the first time since August 2022 that they’ve hit that level.

According to the Energy Information Administration, demand for gas rose last week from 8.72 million barrels per day to 8.92 million. The data also shows that domestic gas supply fell from 244 million barrels to 241.4 million. Meanwhile, gas production grew last week, averaging 9.7 million barrels per day.

Prediction markets show traders pricing in a 61% chance the price of gas could surpass $4 by the end of the month. As AAA projects that gas prices could continue to rise in the next few weeks, markets also imply there’s a 42% and 40% chance gas could finish roughly around $4.02 or $4.04 per gallon, respectively, by March 31.

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

National gas prices increase one dollar in one month

AAA said that average gas prices could hit $4 per gallon in the next few days, which would mark the first time since August 2022 that they’ve hit that level.

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

Max Knoblauch16h

Ethanol players climb following the Trump administration’s move to waive summer gas regulations

Ethanol-exposed companies are climbing on Thursday, following the Trump administration’s move yesterday to waive summertime limitations on the sale of E15 gas, a blend of fuel containing 15% ethanol.

Sale of the higher-ethanol blend is limited in about half of the US over the summer months to lessen smog. Including this year, those limitations have been waived for five summers in a row. According to Axios reporting, E15 typically costs about $0.10 to $0.40 less per gallon while delivering slightly lower fuel economy.

Ethanol companies are climbing on the decision, with Rex American Resources up more than 5%, Green Plains up 3%, and Gevo up about 2%. Rex and Gevo also closed higher on Wednesday.