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Faang Stocks Step Back as Democrats Advance in Senate

Published 01/06/2021, 08:25 AM
Updated 01/06/2021, 08:27 AM
© Bloomberg. The logos for Facebook Inc., Amazon.com Inc., Netflix Inc. and Google, a unit of Alphabet Inc., sit on smartphone and tablet devices in this arranged photograph in London, U.K., on Monday, Aug. 20, 2018. The NYSE FANG+ Index is an equal-dollar weighted index designed to represent a segment of the technology and consumer discretionary sectors consisting of highly-traded growth stocks of technology and tech-enabled companies. Photographer: Jason Alden/Bloomberg
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(Bloomberg) -- The Faang megacap stocks fell premarket Wednesday after Democrats won 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 (NASDAQ:FB). shares dropped 2.4% premarket, while Amazon.com Inc (NASDAQ:AMZN)., Apple Inc (NASDAQ:AAPL)., Netflix Inc (NASDAQ:NFLX)., Alphabet (NASDAQ:GOOGL) Inc. and Microsoft Corp (NASDAQ:MSFT). 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.

(Adds Nasdaq 100 futures, chart; updates share moves.)

©2021 Bloomberg L.P.

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Momo retail investors won't sell until the day they wake up with a -20% in premarket
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