Jan 1, 2021 - Technology
Big Tech's bundle of lawsuits — and record valuations
Two sets of data for 2020 show Big Tech's split-screen reality of cascading investigations on one side and surging valuations on the other.
Why it matters: Technology companies have never been under more regulatory scrutiny. But it so far hasn't impacted their growth or spooked investors.
Driving the news: Regulators across the country launched five new investigations last month into some of the most high-profile tech giants in the world.
- The FTC, the Justice Department, Congress and nearly every state attorney general have dived into the business practices of Google, Facebook, Apple and Amazon.
- CEOs, once elusive and hard to wrangle to Capitol Hill, have made multiple (remote) appearances in 2020, defending their businesses and describing themselves as American success stories.
Meanwhile, Amazon, Google and Facebook's stocks are trading at near-record highs.
- The Google and Facebook share prices are each up roughly 30% since last January. Amazon's stock is up more than 70%.
- Investors have rewarded all three companies for high-growth moves during the pandemic, including e-commerce and gaming.
The bottom line: The dichotomy shows how little regulatory attention matters to Wall Street investors.