1. Senator Wyden requests FTC to investigate Microsoft's cybersecurity practices. 2. Concerns raised over Microsoft's security threatening U.S. national security.
Regulatory scrutiny can adversely affect public perception and stock performance as seen in past cases like Facebook, which faced significant stock declines during investigations.
The investigation could lead to reputational damage and potential financial penalties, impacting stock performance significantly.
Immediate market reactions typically occur following news of investigations, similar to previous stock drops for tech companies amid legal scrutiny.