Heading into the November election, Wall Street was concerned about a “blue wave,” in which Democrats would control the Presidency and both chambers of Congress. The thought was that a complete Democrat majority would reverse President Trump’s tax cuts and seriously consider breaking up major tech companies…
Democrat Joe Biden won the Presidential election but the majority in the Senate has not yet been determined. There will be runoff elections on January 5th in Georgia to decide who will be the state’s 2 senators. If Republicans win just one race, they will retain the majority in the Senate, and make antitrust policy for big-tech harder to implement. But if Democrats pick up both seats, then the Senate will be 50/50, with Vice President-elect Kamala Harris as the tiebreaker.
Therefore, if the Republicans lose both races, it would negatively impact these three tech behemoths in particular: Amazon.com (AMZN – Get Rating), Alphabet Inc. (GOOGL – Get Rating), and Facebook, Inc. (FB – Get Rating).
There’s no question AMZN had a great year as its stock is up 75% so far. Social distancing measures led to a rapid increase in e-commerce as stores were initially locked down, and consumers shopped online. This played right into the hands of AMZN as it’s one of the largest e-commerce companies and websites in the world.
In its latest financial results, AMZN’s earnings grew 69.4% year over year, while its bottom line rose a whopping 192.4%. Assuming the Republicans remain in control of the Senate, the company is poised to increase revenue through e-commerce, its AWS cloud business, smart home products, and more.
The stock is currently rated a “Buy” in our POWR Ratings system. It holds a grade of “A” for Industry Rank and a “B” for Trade Grade and Buy & Hold Grade. It is also ranked #18 in the Internet industry. But if the Democrats win both seats next month, this rating is likely to change.
AMZN is accused of having monopoly power over its third-party sellers and suppliers. The company’s platform is fueled by third-party sellers that offer products on its platform and either use AMZN to fulfill their products or use its infrastructure to put their products in front of potential customers. The problem these sellers face is that…
Continue reading at STOCKNEWS.com