When word leaked about possible antitrust investigations by the American Justice Department and the Federal Trade Commission, stock prices ofThe so-called FAANG stocks lost nearly $140 billion in value on the day.
Experts say the latest onslaught, however, could be a blessing in disguise for investors as it presents a massive buying opportunity.The friction is posing a great risk to these companies, says Kyle Hulette, head of asset allocation at Sygnia who heads up the asset manager’sa high-risk dynamically-managed fund, which was launched last year. He says the performance of shares came off significantly.
Furthermore, Apple is facing a consumer class action back home, where users are contesting the 30% commission charged by Apple on revenue generated from apps hosted on their platform. The Supreme Court has recently that the plaintiff group’s case holds water and the case is allowed to go forward. “Similarities among historical outcomes suggest that investors should reduce exposure to any stock that becomes subject to an antitrust lawsuit,” Goldman Sachs writes.
Like AT&T, Microsoft’s once-lofty valuation shrank to more pedestrian levels during the time of a similar lawsuit.