Janice R. Andrews
Google-parent Alphabet Inc. reached a record stock high on Wednesday, driven by a tech sector rally and a significant shift in leadership at the Federal Trade Commission (FTC). The company’s shares rose 5.5%, closing at $195.45, as optimism surged across Big Tech.
The rally followed President-elect Donald Trump’s decision to appoint Andrew Ferguson as the new FTC chair, replacing Lina Khan. Khan, known for her strict antitrust enforcement targeting major tech firms like Alphabet, Microsoft, and Apple, left a legacy of heightened regulatory scrutiny. Ferguson, a critic of Khan’s approach, is expected to take a more lenient stance on antitrust cases.
“Under Ferguson’s leadership, many believe the antitrust case against Alphabet will be dropped,” said Jay Woods, chief global strategist at Freedom Capital Markets.
Tech Sector Gains Momentum
Alphabet’s performance was part of a broader tech rally. Tesla shares surged 4.6% to a record high, buoyed by speculation about CEO Elon Musk’s rapport with Trump’s administration. Microsoft, Amazon, and Meta Platforms also saw gains, with shares rising between 1.2% and 2%.
The rally was further supported by an encouraging inflation report, which raised hopes for an upcoming interest rate cut by the Federal Reserve. Lower rates typically benefit high-growth sectors like technology.
Alphabet’s Breakthroughs Fuel Optimism
Alphabet’s recent technological advancements have added to investor confidence. On Wednesday, the company unveiled the second generation of its Gemini artificial intelligence (AI) model, alongside innovative AI-driven products such as advanced eyeglasses.
Earlier in the week, Alphabet announced a milestone in quantum computing with its newest-generation chip, solving a key challenge in the field.
“These developments solidify Alphabet’s position as a leader in transformative technologies,” said Michael Ashley Schulman, Chief Investment Officer at Running Point Capital.
Despite earlier criticism for lagging in AI, Alphabet’s breakthroughs in quantum computing and processor innovation signal its potential to dominate in cutting-edge technologies. “Google’s latest chip demonstrates the company’s technical expertise,” added Jamie Meyers, senior analyst at Laffer Tengler Investments.
With groundbreaking advancements and easing regulatory pressures, Alphabet is well-positioned to continue its upward trajectory in the competitive tech landscape.
