Trump hates Jeff Bezos and promised to give him hell. Okay, that explains AMZN tanking. But why FB amd GOOGL??

All three are about 4%-5% down mid-day.

Just my two cents, but I am wondering if people are just moving out of these stocks to fund other investments (not that there is really anything negative about FB and Googl). So many other sectors have had huge gains in the past couple days.

Think about how much cash / revenue these companies have and also how much is international. Then think about how Trump wants to change the tax code and international policies. It will also hurt all the big software companies - Microsoft, SAP, Oracle

"But why FB amd GOOGL??

All three are about 4%-5% down mid-day."

IMO there is a rotation going on to laggard sectors. They are using the big tech as a source of funds for drugs/biotechs (down about 30% for the year prior to Trump) and financials who have been in a 7 year drought.


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Interesting article on this very subject……


I don’t know if it’s accurate to lump all of these tech companies in together with regard to how Trump’s policies will affect them. Like any president, there is undoubtedly a mixture of pros and cons a Trump administration will bring to some of our favorite stocks. And the pros and cons might be different depending on which one of these companies we’re talking about.

I think restructuring the corporate tax code and allowing a sort of tax holiday on repatriated foreign profits will be a boon to companies like Apple and Microsoft that hold a lot of cash overseas and record mountains of profits each quarter.

I’m not sure how Trump’s presidency will affect Facebook yet, one way or the other. I will note that Peter Thiel, who sits on FB’s Board of Directors and was the company’s first outside investor, was one of Trump’s biggest supporters, even speaking at the GOP convention.

As far as Amazon, I wouldn’t be too concerned about any personal feud between Bezos and Trump or any antitrust problem Amazon might have. I would primarily just worry that Trump is not a globalist and seems intent on limiting free trade. For Amazon, this could be a big detriment as it relies on a lot of cheap Chinese goods. Via the Seattle Times:

Bezos built an empire based, in part, on Internet sales of goodies that stem from the overseas factories that Trump has said have stolen American jobs.

Free trade fills the company’s sails — as it builds a planetary network of warehouses, transportation and profitable data centers that are turning it into a truly global store. At the end of 2015, more than a third of Amazon’s physical footprint was in countries other than the U.S., and about 32 percent of its retail sales were made overseas. Trump has also railed against the trade deals that facilitate some of that commerce, saying they’re not advantageous enough to the U.S.

Amazon didn’t respond to a request for comment. Its annual report contains language about potential negative impacts of protectionist measures, including U.S. laws and policies “affecting trade,” that before Tuesday could have seemed boilerplate, but since Trump’s election now have some relevance.

As for the potential impact of higher tariffs, “that would affect a lot of companies,” including major competitors that offer less selection than Amazon, and are therefore more vulnerable, Sebastian said.

Read more at…

These are just my first thoughts and, as we all know, proposed policies are not always enacted and promise not always kept by incoming presidents. So we will see.

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