A leadership change is coming at the Federal Trade Commission, and Wedbush analysts see it as a major positive for Big Tech led by Amazon, Meta Platforms and Microsoft.
Amazon stock and shares of major technology companies rose Wednesday after President-elect Donald Trump said he would name Andrew Ferguson to lead the Federal Trade Commission, replacing current FTC Chair Lina Khan. Khan is a major critic of Big Tech and has launched lawsuits against both Meta and Amazon while also unsuccessfully challenging Microsoft's $69 billion acquisition of Activision Blizzard. Ferguson is a Republican already serving as an FTC commissioner.
Ferguson would "be the most America First, and pro-innovation FTC Chair in our Country's History," Trump wrote on Truth Social.
"Christmas came early for the tech world," Wedbush analyst Dan Ives said in a client note, saying the "Khan overhang" has been "removed for the tech world at a key time in the AI arms race."
"We expect the strong to get stronger as Mag 7 gets the engines started up again on M&A with Microsoft, Oracle, Alphabet, Amazon, and Tesla set to accelerate deals to expand their technology moat," Ives said.
"We expect Ferguson to continue to have a keen eye on the tech world and antitrust swirls, however he will clearly roll back Khan's head-scratching anti-tech agenda including ending efforts to regulate AI and abandoning a brutal standard for any merger of any size for the tech world," Ives added.
Amazon Facing October 2026 Trail
One of Khan's biggest moves as FTC leader was launching an antitrust lawsuit late last year against Amazon, with an October 2026 trial currently scheduled for the suit.
Ives added in his client note that he "believe(s) any chances of tech breakups goes down significantly with Khan gone from the 202 area code," referring to Washington D.C.
He is also positive on Tesla Chief Executive Elon Musk having a "a front-row seat" in the Trump administration.
"Apple and the DOJ will soon have more battles in the court system," Ives added, "but ultimately we believe Big Tech emerges from these legal and Beltway battles with some scrapes and bruises ... but nothing more concerning that disrupts the bullish tech trade and AI Revolution thesis into 2025 and beyond with Khan now in the rear view mirror."
Amazon Stock, Meta At All-Time Highs
On the stock market today, Amazon stock is up 2.7% at 230.15 in recent action, notching an all-time high. Meta stock is up 2.4% at 634.29, also near all-time highs. Microsoft stock is up 1.3% at 449.23.
Meta stock has gained 79% this year, while Amazon stock is up 52%. Microsoft has gained 19% trailing a 27% year-to-date gain for the S&P 500.
Both Meta and Amazon stock recently broke out. Amazon jumped past a 201.20 consolidation pattern buy point following Trump's victory last month, while Meta on Dec. 6 broke out past a 602.95 flat base entry, according to MarketSurge. Microsoft, meanwhile, has formed a consolidation pattern with a 468.35 buy point, as shown on MarketSurge.
