As calls to regulate or break up US tech giants increase, Wall Street sees a resemblance to past situations in which massive companies faced years of scrutiny and difficulty.
Senator and presidential candidate Elizabeth Warren said recently that Facebook, Google, Amazon, and Apple should be split up to increase competition.
Some experts now say the companies are in for an extended rough period. One money manager explained to Business Insider why he stopped buying those four stocks entirely.
With Big Tech squarely in the government’s crosshairs, some on Wall Street think that years of pain are coming for social media companies like Facebook and other longtime market favorites like Google.
Pressure on such firms has been ratcheted up following Senator and presidential hopeful Elizabeth Warren’s recent calls to break up Amazon, Facebook, Apple and Google. Other candidates are likely to go after the companies as well, leading to new regulations that these experts say could send costs climbing and drive down their profit margins and stock multiples.
“When government regulation starts to look at a sector, it just looks at the biggest ones,” Michael Antonelli, a market strategist at $130 billion Robert W. Baird Private Wealth Management, told …read more
Source:: Businessinsider – Technology