Microsoft's (NASDAQ:MFST) stock slipped as much as 0.8% early Friday, underperforming the broader market, following the announcement late Wednesday that the Federal Trade Commission (FTC) has launched a sweeping investigation into the tech giant.
The probe, which focuses on Microsoft's bundling of its cloud services with other software products, including its productivity suite and security offerings, sent ripples through Wall Street, with some analysts downplaying its significance.
The FTC's investigation is reportedly detailed in a "hundreds of pages" request, signaling that the agency is looking into how Microsoft packages its services—a move that could raise concerns about anti-competitive behavior.
This marks another step in the ongoing scrutiny of big tech companies, led by FTC Chair Lina Khan, who has aggressively pursued antitrust actions against tech giants such as Alphabet and Apple.
However, not all analysts see the development as a major threat.
Dan Ives, a prominent analyst at Wedbush, stated that the announcement was "much more bark than bite" and that the investigation would likely become a secondary concern once President-elect Donald Trump appoints a new leader at the FTC.
In a note to clients, Ives suggested that Khan’s tenure at the FTC was nearing its end and that under the incoming administration, antitrust scrutiny of tech companies would likely ease.
Meanwhile, Microsoft’s stock, along with those of other major tech companies, has lagged the broader market.
Shares of Alphabet, Apple, and Microsoft have all underperformed the S&P 500’s 26% year-to-date gain.