Anti-Trust Talk Undercuts Techs
It’s a wild session on Wall Street today for technology stocks.
Facebook (FB) and Alphabet (GOOGL) are getting smoked.
So far, it’s all news specific. Lawmakers are talking a tough game about regulating big tech. And FB has its own problems with advertisers boycotting the platform over perceived hate speech amplification.
The latter is a total canard. Advertisers are not really going to boycott FB. They need the eyeballs. In the end, they will make certain their messages don’t get fitted to pages they don’t like. Investors are probably overreacting.
As for talk about breaking up Alphabet, I'm all for it from a portfolio management point of view: Spin-offs would unlock more value, making the company in its new form even more powerful than it is now.