After Trump’s speech at the UN General Assembly, FAANG’s market capitalization hits $ 56 billion

On September 24, US President Donald Trump made a speech at the 74th session of the UN General Assembly in New York. During the cadence, this is Trump’s third big speech at the United Nations. It is noteworthy that after his speech, the world’s largest technology companies included in the big five FAANG (Facebook, Amazon, Apple, Netflix and Google) lost billions of dollars in market capitalization.

[dropcap]M[/dropcap]ore specifically, the total market capitalization of the FAANG group fell by an impressive $ 56 billion, according to Bloomberg.

Shares of the above-mentioned companies crashed after Trump expressed his dissatisfaction with the growing popularity and influence of large Internet services and social networks. In this message, some large investors saw a clear signal that the IT industry could soon be subject to additional checks by federal antitrust regulators.

Read also: Facebook blocked tens of thousands of apps due to privacy issues

In fact, back in June, the Wall Street Journal reported that the US Federal Trade Commission (FTC) was commissioned to conduct antitrust investigations of Facebook and Amazon, while the US Department of Justice was targeting Google. On Facebook, reporting for the second quarter of 2019, they confirmed the fact of the initiation of a new antitrust case. So these investor concerns are well founded.

Tom Essay

Tom Essay

“This is a reminder of a new potential threat that was not there before, and you need to take it into account when evaluating the [investment attractiveness] of the company”, – Tom Essay, a former Merrill Lynch trader who founded The Sevens Report, told the source. – “The president is convinced that social media companies are extremely influential and not particularly happy with his political course or, perhaps, his vision.”

In his address, where, inter alia, the issue of tension in US trade relations with China was raised, Trump said that social media is gaining “tremendous power” and that “a free society cannot allow technology giants to drown out the voices of ordinary people.”

Immediately after this, Facebook and Amazon shares fell in price by more than 2.5% to the lowest level since August, Netflix shares fell 4.4%, and Microsoft – 1.5%. The Nasdaq Composite stock index, calculated based on quotes from high-tech companies, fell 1.7%.

[box]Note that Trump is not the first time in this way that harms technology companies. In 2017, he tweeted Amazon down to $ 5.7 billion in market value.[/box]

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Sophia Zimmerman

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