| The Information is hosting an event on the impact of AI on the IPO market in San Francisco on November 14th, with speakers from NYSE, Citi and J.P. Morgan. How is the IPO market shaping up for tech and what will AI's impact be? More details & request an invite here. Greetings! That's what you call delight. Stocks rocketed—the tech-heavy Nasdaq rose 3%—as Wall Street applauded Donald Trump's victory in Tuesday's election. Most tech stocks rose in tandem—Tesla stock jumped 15%, reflecting the benefits CEO Elon Musk is expected to earn from his vocal support for Trump. Notably, one of the few tech stocks to lose ground was Meta Platforms, whose CEO, Mark Zuckerberg, is not exactly a Trump favorite. Apple was another stock loser—after rallying earlier in the day—which may be a sign that investors recognize the threat for the iPhone maker of Trump's planned tariff increase. Otherwise, though, the mood appears upbeat. As much as progressives are fretting about what Trump will bring, investors and others in tech appear focused on the potential for Trump to pursue a deregulatory approach that should be good for business. Elon Musk summed it up with a post on X: "America is a nation of builders, soon you will be free to build." Most obviously, Trump has signaled he's pro-crypto—Coinbase stock rocketed 31% today—but the smart money is betting that artificial intelligence will also benefit. Greg Allen, director of the Wadhwani AI Center at the Center for Strategic and International Studies, said Tuesday on a subscriber call for The Information that he expects Trump will quickly rescind Biden's executive order regulating AI, which some investors have argued hurts AI startups. Allen also predicted Trump will deregulate rules governing the construction of electrical generation to help speed data center construction. Lots of tech companies in the AI sector would welcome that. What about Meta? Trump doesn't have to go as far as he has threatened—jailing CEO Mark Zuckerberg—to squeeze the company. For one thing, as my colleague Stephanie Palazzolo wrote today, Trump could crack down on open-source AI—most obviously Meta's Llama models—to ensure countries like China don't use it. Such a crackdown might undermine the investor bullishness about AI's potential to boost Meta's ad business, which has helped lift the company's stock in recent months. Trump has other regulatory levers to use against Meta, including a Federal Trade Commission antitrust lawsuit pending against the company. Then there's the legislation before Congress aimed at regulating how children use social media, to which he could give a nudge. Trump has also come out against a U.S. ban of Meta rival TikTok—now due to happen by his inauguration unless the app cuts ties with its Chinese parent, ByteDance—in part because he doesn't want that ban to strengthen Meta. As we reported on Tuesday, that's why TikTok executives saw a Trump victory as the best hope for the app's survival. Let's not get ahead of ourselves. We've got more than two months until Trump takes office, and much about the administration will depend on who gets what job. Trump is prone to changing his mind, so none of his previously stated policy positions are set in stone. (See Rippling CEO Parker Conrad's thoughts on that topic, courtesy of Eric Newcomer). There's also the potential for the increased tariffs Trump wants to impose on imports to disrupt the economy, which wouldn't be good for any business. Other tax cuts he wants could seriously lift the deficit, pushing up interest rates. Still, despite all of Trump's well-documented flaws, investor enthusiasm for the new administration is understandable. There's just no guarantee Trump will help tech as much as some people seem to now expect. - Lyft stock jumped 22% after the company reported 32% higher revenue of $1.5 billion for the third quarter. Earlier, Lyft had announced partnerships with self-driving–car firms to help it match Uber's planned Waymo offering.
- Arm Holdings' revenue growth slowed to just 5% in the September quarter, from 39% in the previous quarter, as a decline in licensing revenue was offset by higher royalty revenue.
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