With the acceleration of presidential campaigns in 2020, the dominance of Silicon Valley technology companies is likely to remain an issue for Democratic candidates, Bank of America analyst Justin Post said Monday in a statement to investors.
"We have to destroy them." Guys aside, "Warren added," It's like baseball: you can be the referee or you can own one of the teams, but you can not be the referee and the teams. "
Post analyzed the" resolution scenarios "for Warren repeatedly points out in her criticism of the letters Alphabet, Amazon, and Facebook, and while foreclosures can largely help the two former technology giants, Post believes that Facebook poses the greatest risk to the serious loss of corporate value.
Bank of America considers a "partial breakup of alphabet (including YouTube or Waymo distribution)" to be potentially "value added." With the vast reach of Alphabet's individual business units as separate entities, each brand "has a sufficient scale to capture the interest of the To awaken customers, "added Post.
Similar to Amazon's Post, a "Separation is somewhat neutral to the stock." With investors in Jeff Bezo's "empire" generally comfortable, "it's all in favor of the value of Amazon's business. "
Dissolution of Facebook" may be the most worrying to investors, "said Post, noting that if Facebook's Facebook and WhatsApp platforms are separated, they're likely to compete directly with Facebook for use and advertisers which raises concerns about increased competition. "
This overlap in the Facebook companies is the main reason why Warren thinks they should be separated
" They have bought the competition, and now suck they get the data out of the competition, "Warren said.
While Bank of America did not include Apple in their resolution analysis, Warren confirmed to CNBC that they intended to break the iPhone maker in. In her interview with CBS, Warren argued that that she is not against the markets she said "produce a lot of good" but instead "the markets must have rules"
"It is not capitalism when there is a giant coming and dominating a monopolist who dominates a market," Warren said.
Warren said recent discussions with venture capital firms indicated that the places where Amazon, Facebook and Google compete are called "kill zones" for entrepreneurs. 19659003] "They call it the Killzone because they do not want to fund any business in this room because they know that Amazon is eating them up, Facebook is eating them up, Google is eating them up," Warren said.