Big Tech — the Silicon Valley giants like Twitter, Google, Amazon, and Apple — just screwed investors in a move to save political face.
On Friday, Twitter and Facebook both removed President Donald Trump from their platforms. Then, over the weekend, Apple and Amazon, and Google joined forces to remove Parler, a conservative alternative to Twitter, from their app stores.
They did it to keep President-elect Joe Biden off their back, but the consequences affect everyday investors like you.
Just look at the stock price:
Twitter opened Monday on a huge gap down off the news that they were removing their sixth most-popular account.
Do you think Jack Dorsey cares?
By grouping together to silence political enemies, all of Big Tech not only hurt their short term financial outlook, but they opened themselves up to antitrust litigation in the near and long term. Parler is already suing Amazon.
In short: they’re screwing their investors openly.
What can you do about it?
For the everyday investor, it can be hard to know what to do at times like these.
You may feel personally attacked if you are politically opposed to Twitter’s moves. But even if you aren’t, you still may feel isolated and uncertain. How could you not?
The best move here is to hunker down for a bit. Don’t trade on Big Tech until you can be certain that the storm has passed.
If you’re holding Big Tech shares for the long term, that doesn’t mean you have to sell them right this second. Keep holding if you’re in it to win it.
But remember, think about yourself and focus on what’s right for you, because God knows these companies will not.
And, as always, check back with Financial Wars and the Financial Wars podcast to learn the latest on this situation as it continues to boil.