The Faang megacap stocks fell premarket Wednesday after Democratswon one of two seats in Georgia that they need to take control of the U.S. Senate. The other race remains too close to call.
A blue sweep of Georgia that puts the Senate in Democratic control would be a “clear negative” for big tech, Wedbush analyst Daniel Ives said, raising the potential for greater antitrust regulations in the sector.
Facebook Inc. shares dropped 2.4% premarket, whileAmazon.com Inc.,Apple Inc.,Netflix Inc.,Alphabet Inc. andMicrosoft Corp. fell less than 2%. Nasdaq 100 futures fell 1.4% while S&P 500 futures were trading lower by 0.3%.
“We would expect much more scrutiny and sharper teeth around Faang names with potential (although still a low risk) legislative changes to current antitrust laws now on the table,” Ives said.
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