Big Tech Cosy Up to President Trump after Contentious Relationship
In a marked shift from their adversarial stance during his initial term, Big Tech companies have sought to ingratiate themselves with President Donald Trump. This was evident at Trump's inauguration, where executives like Mark Zuckerberg (Meta), Sundar Pichai (Google), and Tim Cook (Apple) secured prime seats, outshining incoming cabinet members.
According to Matthew Prince, co-founder and CEO of Cloudflare, Big Tech has been motivated by potential risks and a desire to engage with the administration. "The tech industry is a potent force for the United States and the world," Prince stated, emphasizing the need for investment in all levels of the industry.
Cybersecurity stocks have flourished since Trump's election, with Cloudflare and Fortinet (FTNT) posting impressive gains. Optimists attribute this to Trump's support for the cybersecurity business model, exemplified by his signing of the National Cyber Strategy in 2018.
Furthermore, the surge in interest in artificial intelligence (AI) and potential regulatory easing under Trump may boost cybersecurity stocks. Dan Ives, a Wedbush tech analyst, predicts a 30%+ increase in the sector over the next year due to AI and cloud growth, as well as mergers and acquisitions.
The growing prevalence of digital technology has also heightened cybersecurity risks, as highlighted by the World Economic Forum's 2025 global cybersecurity outlook. This has created a demand for robust cybersecurity measures in both the private and public sectors.
As Brian Sozzi, Executive Editor at Yahoo Finance, notes, a significant number of CEOs and cyber leaders cite cyber espionage and data breaches as their primary concerns. The industry is poised for growth as organizations seek to mitigate these risks.