The Case for Breaking Up Facebook, Google and Big Tech | PRO Insight
Leaked audio this month revealed that Facebook Founder Mark Zuckerberg would sue over Elizabeth Warren’s antitrust plan should she be elected president in 2020. If Zuckerberg was forced to spin off Instagram, it would be very good for investors and users. Warren isn’t attacking Facebook; she’s attacking Zuckerberg’s control of a bloated, inefficient and badly run monopoly. What would happen if a big tech company were broken up? I often get the question about whether doing so would increase the stock price of the company. The stock market is an instrument for valuing our enterprises, and there’s something disconcerting about policy that would reduce the value of our businesses. Big tech — Facebook, Google, Amazon, Microsoft, and Apple — are the largest and most liquid names in the stock market, sometimes known as ‘hedge fund hotels.’ Taking other peoples’ money and investing it is based on groupthink: It’s fine to lose money, but only as long as everyone else is losing it, and vice versa. Most analysts want to make sure they aren’t out of step with the crowd, and the crowd right now is concerned about antitrust and big tech. I have three examples suggesting they shouldn’t be so concerned,...
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