<p>Massachusetts Senator Elizabeth Warren suspended the 2020 presidential election on March 5. The exit from the former Democratic front-runner relieved supporters of Joe Biden and Bernie Sanders. This undoubtedly resulted in a sigh of relief from investors in some very large technical stocks.
An important part of Warren’s campaign was her plan to “break up” technology companies. She presented her plan in a post from March 2019 and wrote:
“Today’s large technology companies have too much power – too much power over our economy, our society and our democracy. They have bulldozed competition, used our private information for profit, and tilted the playing field against everyone else. And in the process, they have hurt small businesses and stifled innovation. ”
No matter what you think of Senator Warren’s plan, it would have spelled bad news for some of the biggest tech stocks. With that said, here are four companies in particular that are now releasing a big sigh of relief.
Tech shares happy to see Elizabeth Warren release: Facebook (FB)
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Facebook (NASDAQ: FB) made headlines during much of the previous year. The social media giant was facing scrutiny of data privacy and the use of the platform for election disruption.
Senator Warren accused Facebook of using acquisitions to stifle competition and increase its dominance. She pointed out CEO Mark Zuckerberg’s comments that Facebook was so powerful that it could function more like a government than a traditional company.
Her plans for FB included the appointment of federal regulators who would be tasked with “liquidating anti-competitive mergers”, including WhatsApp and Instagram.
These messaging programs are seen as the future of Facebook as growth on the most important platform booths and younger users are abandoning it. Getting here from a presidency in Warren would have been a big one for the FB share.
The Alphabet (GOOG)
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The Google alphabet (NASDAQ: GOOG, NASDAQ: GOOGL) is named for the amount of web traffic that goes through its services … and the power it uses as a result.
Warren Plan claims that Google has used its search rankings to “sniff out” competition and promote the results of its own services over those of competitors. She defines Google’s search and advertising activities as “platform tools” that would need to be spun independently.
In addition, Senator Warren plans to see Google’s Nest, Waze and DoubleClick acquisitions liquidated.
Add the Warren plan to the antitrust review that Google is undergoing in Europe and the potential impact on the GOOGL share was difficult to exaggerate.
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Amazon (NASDAQ: AMZN) was also named in the Warren Plan. She noted that almost half of all US e-commerce goes through AMZN. This allows the company to force brands that want to sell on their platform to lower their prices. She also made a more condemning accusation:
“Amazon crushes small businesses by copying the goods they sell on the Amazon Marketplace and then selling their own branded version.”
According to her plan, Amazon Marketplace will be a platform that is cut off. In addition, Amazon’s Whole Foods and Zappos acquisitions will be discontinued.
None of these measures has any disadvantage for the AMZN share.
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Although Warren did not call Apple (NASDAQ: AAPL) by name in her original post, she was quick to point out that the company was also in her view.
The next day, she was interviewed by The Verge, where she focused on Apple’s App Store business:
Apple, you have to break it from their App Store. It must be one or the other. Either they run the platform or they play in the store. They must not do both at the same time. ”
The App Store is a big deal for Apple. The 30% reduction in sales and subscription revenues is lucrative. During the 2018 holiday week, customers spent $ 1.22 billion on the App Store, including $ 322 million on New Year’s Day alone. Those revenues are expected to continue to rise and become increasingly important for the company as iPhone revenues begin to decline.
If Elizabeth Warren’s plan to break up the technology companies had come true, AAPL is another of the major technical stocks that would have known the effect.
Brad Moon has been writing for InvestorPlace.com since 2012. He also writes about stocks for Kiplinger and has been a leading contributor focusing on consumer technology for Forbes since 2015. At the time of writing, he had no position in any of the above. securities.