Stock Strategist: Antitrust Flexes Its Anti-Big-Tech Muscle

[Morningstar Logo]( [Company Site]( [Company News]( [Membership]( [Portfolio]( [Stocks]( [Options]( [Funds]( [ETFs]( [Markets]( [Tools]( [Personal Finance]( [Discuss]( Stock Strategist Antitrust Flexes Its Anti-Big-Tech Muscle But excessive actions are unlikely to significantly harm Alphabet or Facebook. [tab_bar] by Ali Mogharabi | 5/6/2020 2:30:00 PM The latest antitrust movement in the United States creates additional risk for Alphabet [GOOG]( and Facebook [FB]( but we believe this is already priced in, with both stocks fairly valued. Further, we don't believe investors should be overly concerned about a worst-case scenario. We expect that the U.S. Federal Trade Commission and the Department of Justice will aggressively enforce the Clayton Antitrust Act to limit Google’s and Facebook’s acquisitions and are likely to impose additional fines on past behavior. We believe there is more uncertainty surrounding Facebook, as it is caught in more of a political upheaval during an election year than Google. Still, even in what we believe is the most plausible downside scenario, which includes fines beyond what we view as reasonable based on previous cases and excessively restrictive regulation that will likely harm consumers, our Alphabet and Facebook fair value estimates decline only 10%-15% versus our base case. To read more, click [here](. Sponsored Links [Buy a Link Now]( Podcast: Investing Insights From Morningstar.com Listen to a roundup of the latest videos featured on Morningstar.com [in this podcast]( available through iTunes. Free Issue | Morningstar's Stock Newsletter >> Morningstar StockInvestor is celebrating more than 10 successful years of high-quality stock investing. Its two real-money portfolios have outperformed the S&P 500 since 2001. [Get new ideas for the core of your stock portfolio](. Search Most Recent Articles [A Star From the Previous Bear Market Is Struggling in This One]( [A New Role for Advisors: Helping Clients Find Financial Aid]( [Topsy-Turvy: How to React if Your Fund's Rankings Went Upside Down This Quarter]( Latest Analyst Reports [Diamondback Energy]( [Philip Morris International]( [Enel Americas]( [Mondelez International]( [Skyworks Solutions]( ABOUT OUR EMAIL TO UNSUBSCRIBE this email address to the Stock Strategist newsletter, please click "reply" and then click "send." This will unsubscribe only this email address to this specific newsletter. All subscription changes will take effect within one business day. Replies are not read by individuals, so please do not use this for queries about Morningstar.com. If you have questions about Morningstar.com or your membership, send a note to [joe@morningstar.com](mailto:%20joe@morningstar.com). ABOUT OUR PRIVACY POLICY Please [click here]( to learn about Morningstar's privacy policy. (c) Copyright 2020. Morningstar, Inc. 22 West Washington Chicago, Illinois, 60602 All rights reserved.