It’s refreshing to see Silicon Valley magnets getting their comeuppance in the equity markets.
Alphabet (Google), Amazon, Facebook, Apple and Netflix have been taken to the woodshed after their strenuous fight against President-elect Donald Trump.
I have no objection to any person speaking of their support for a candidate, but when you take your business into that fight as Amazon through the Washington Post and Facebook through its “news feed” bias that goes too far.
Jeff Bezos the chief of Amazon used the Washington Post as his Hillary Clinton mouthpiece. The Post’s daily Trump dump of half-truth stories did much harm to a once great paper. As an aside The New York Times falls into this same category to the point that its Public Editor took the paper to task on its stilted election coverage.
So Bezos has lost some $6 billion in paper losses as the stock has fallen almost 9% since the election was called. Mark Zuckerberg of Facebook has seen a similar decline in his stock price over the bias news being offered on user’s timelines.
Now market analysts will say the stock price cratering in big tech is a rotation out of the sector to move money into an infrastructure play since the Trump camp has said it will use more than $1 trillion in tax breaks to rebuild roads, bridges and airports, but there was roughly $750B in cash coming out of the bond market during this same period and no much was employed into Silicon Valley’s FANG stocks.
If you are an Amazon or Netflix customer and a Trump supporter, you should think about going to another vendor to provide the services you want.
Of course this narrative would not be found in the news as it goes against the liberal bias found in the media, but as New York Senator William L. Marcy said in 1828 on the election of President Andrew Jackson, “Too the winner, belongs the spoils.”