Skip to content
Learning that drives better investment decisions

Trees Don’t Grow to the Sky, Tech Won’t Go Up Forever

Trump has sent the regulators after Tech, they are possibly earning monopoly profits. They could be split up. If Trump is President, then there may become a Republican and Democrat Facebook. If Democrats win, they just may force them to break up.

Time to dig more deeply into Tech

This study is a bottom-up analysis of the whole US market, i.e. 5,400 companies. Then we break out Info. Tech. sector, and the Big 6 Tech: Apple, Microsoft, Amazon, Alphabet, Facebook, Alibaba.

US Info. Tech. company profits are on fire, more than double the US average

Re-rating happening mainly in Info. Tech. sector

PE re-rating happening at Tech too

Big 6 Tech accounts for 6% of total US market revenue, industry 15%

Big 6 Tech account for 16% of total US market cap, industry 30%

Big 6 Tech account for 20% of total US market cap, industry 38%

Key points

  • Tech companies are facing big challenges with Trump sending the regulators after them
  • It could be argued that they are earning monopoly profits
  • Trump may push them to split into Republican and Democrat Facebook, Democrats may just break them up


DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.