12 Jun

As Big Tech Faces Antitrust Concerns, Markets Trust Microsoft

WRITTEN BY Mohit Oberoi, CFA

Antitrust probe

Reportedly, US authorities are investigating big tech names regarding antitrust concerns. According to a CNBC report, the US Department of Justice is investigating Alphabet and is potentially planning to probe Apple (AAPL). The Federal Trade Commission is said to be investigating Facebook and Amazon.

Microsoft (MSFT) has outperformed its big tech peers this year and has reclaimed its $1 trillion market cap. While FAANG stocks have also risen this month, they’re still far below their 52-week highs.

As Big Tech Faces Antitrust Concerns, Markets Trust Microsoft

It was a matter of time before big tech companies faced antitrust heat. Last month, the US Supreme Court ruled against Apple in a case related to its App Store. Other tech names, especially Google and Facebook, have also been under scrutiny for their handling of customer data. Apart from the antitrust probe, US technology companies are dealing with several other challenges.

Apple

Apple is a case in point, as the company is significantly exposed to the fallout of the US-China trade spat. Its supply lines in China could be threatened if President Donald Trump goes ahead with tariffs on remaining goods from China. Trump might decide on tariffs after the G20 summit, which is slated for later this month in Japan. Read Why Investors Should Keep an Eye on the Upcoming G20 Summit for more analysis.

Amazon could also see higher costs if the remaining goods from China are slapped with tariffs, which would hit e-commerce vendors as well as brick-and-mortar retail stores. Alphabet has also been dragged into the US-China trade war and has reportedly stopped taking new business from Huawei.

Microsoft

Meanwhile, despite the trade war noise and the antitrust heat, it’s been largely business as usual for Microsoft. The company has also been expanding and building new partnerships. Read Microsoft Follows Apple by Raising Bets on Gaming Industry for more analysis.

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