Hello,

 

Whilst the acronym has been expanded to include Microsoft, Nvidia and Tesla (with Netflix dropping out) the FAANG stocks (remember them?) are shifting back into regulatory focus as Trump’s second term looms large. The prices of Big Tech stocks reacted positively to Trump’s victory, but this may disguise what will be a complex relationship. Trump’s second term coincides with a pivotal period for the tech industry. His administration will have their say on consequential issues such as antitrust and AI regulation, and the future of the CHIPS act. Now that Republicans have officially taken control of Congress, the president-elect will find it easier to translate his rhetoric into legislative action.  

 

Trump’s ties with Big Tech have been contentious to say the least, and he recently selected Brendan Carr, an outspoken critic of Big Tech, to head the Federal Communications Commission. But there is reason to believe that Trump is warming to Big Tech. He recently dismissed the notion of breaking up Google, which has been suggested by the Department of Justice, saying “We want to have great companies”. It’s also noteworthy that the five most valuable tech companies outperformed the broader market during Trump’s first term. However, only time will tell if Trump’s agenda leads to similarly glowing returns in Big Tech this time round. 

 

As always, if you wish to discuss anything in this newsletter in further detail, please do get in touch.