The acronym for Facebook, Amazon, Netflix and Google parent Alphabet, the common term on Wall Street is FANG, was once the darling sector for tech. But as President Barack Obama ignored them, President Donald Trump and others are watching them closely.
These firms enjoyed shocking growth and hundreds of billions of dollars in profits, but the landscape is changing, and changing fast.
Throughout 2015, 2016 and 2017 these firms rallied higher with some gaining 150 to 200 percent over a 5 year period. Since these firms reached their 52-week high, they have lost a total of almost half a trillion dollars with Google losing $173 billion since April.
The concern now is that these firms are said to have outsized or excessive influence over the US economy and that politicians and technology executives are debating their position in society. Of course, US regulators have been closely watching the tech industry.
And while many people struggle with the privacy debates, the usage of millions of consumers` information by third parties, the Federal Trade Commission has reportedly assumed oversight of Amazon and Facebook.
In a report from a financial institution, D.A. Davidson analyst highlighted, “the potential for antitrust and regulation across the globe” as a hurdle for future expansion, so the stocks of these companies are in for an extended period of volatility and trading opportunities.
More importantly there are many foreign governments that are now coming to the realization that allowing only a few firms to have such enormous influence on the day-to-day lives of consumers is dangerous and therefore, must be closely monitored.
There are some investors who are now questioning the growth of the tech industry as it will be governments around the globe who are concerned about all aspects of society.
If giant tech companies have impact on consumers, their habits, their emotions and even voting patterns, regulators have a duty to monitor these firms closely.