The stock prices of Alphabet Inc. (NASDAQ: GOOG), Facebook, Inc. (NASDAQ: FB) and Amazon.com, Inc. (NASDAQ: AMZN) were crunched on Friday, falling by a massive 6.11%, 7.51% and 4.64% respectively.
What Caused The Sell-Off?
The stock prices of Google’s parent company Alphabet, Facebook and Amazon were sold off heavily after news broke that the House Judiciary Committee will be commencing an ‘Antitrust Investigation’ of their operations.
Jerrold Nadler, Chairman of the House Committee stated, “Given the growing tide of concentration and consolidation across our economy, it is vital that we investigate the current state of competition in digital markets and the health of the antitrust laws”.
Major news outlets have also reported that US Justice Department and Federal Trade Commission will be spearheading investigations of these NASDAQ listed giants to assess how they have limited competition to their respective businesses.
Is This A Buying Opportunity?
These companies are undoubtedly of “high quality” and have a lengthy track record of delivering high returns to investors. However, with the risk of increased regulation hanging over these stocks, it may not be the opportune time to be buying.
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At the time of publishing, William does not own shares in any of the companies listed.
