Facebook, Amazon, Youtube and others – on watch.
The ongoing fear that tough regulations are in store for tech companies in the future has given investors the rare opportunity to buy these big tech names at lower prices. Surely the likelihood of Google, Facebook or any of these tech companies being broken up into smaller components is very low, but the recent concerns of investigations into possible anti-trust is welcomed by many.
This of course was reported in the Wall Street Journal, which pointed out that the Federal Trade Commission had clearance to investigate how the company`s practices impact competition. Also, the FTC and Justice Dept. just struck a deal that they would put Amazon under a microscope, putting added pressure on the rapidly expanding company. This news comes at time when these firms have performed well over the past 5 years – Alphabet up 88%, Facebook up 177% and Amazon up 447%.
While many believe the breakup of tech companies is unlikely the downward pressure on their stocks over the past 12 months could continue. But more importantly, in the coming weeks, there will be volatile days across all tech names, and one would think that the major names, FANGs, will be driven lower ……Opportunities continue.