Market Overview

GDPR: The New European Data Rules And Why They Matter For Ad, E-Commerce Players

GDPR: The New European Data Rules And Why They Matter For Ad, E-Commerce Players

The General Data Protection Regulation is set to go into effect May 25, and Morgan Stanley analyst Brian Nowak parsed the impact the new European data protection rules will have on e-commerce, online advertising and online travel stocks in a note.

Online Advertising

Online ad leaders will soon be forced to obtain consent from their users to collect and use their data. It's unclear how often users will have to consent and how strict regulators will be on how advertisers gain consent, Nowak said. (See the analyst's track record here.) 

Advertisers could even provide incentives for consent, such as free service subscriptions, he said. 

The following stocks could be impacted, Nowak said: 

  • Facebook Inc (NASDAQ: FB)
  • Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)
  • Snap Inc (NYSE: SNAP)
  • Twitter Inc (NYSE: TWTR)


E-commerce companies will also be required to gain consent to access user data. One of the primary strategies e-commerce companies use to drive sales is retargeting, which Nowak says could prove to be a challenge without reliable access to user data from platforms and their ad partners.

Both, Inc. (NASDAQ: AMZN) and eBay Inc (NASDAQ: EBAY) will be impacted by the new regulations, according to Morgan Stanley. 

Online Travel

Online travel sites, which typically make customzed, personal recommendations based on location and other data, might find targeting to be more difficult under the new rules, Nowak said. It's unclear whether location data — which is critical for online travel targeting — will fall under the scope of the GDPR, according to Morgan Stanley. Booking Holdings Inc. (NASDAQ: BKNG) and Expedia Inc (NASDAQ: EXPE) could be impacted, Nowak said. 

Related Links:

Appeals Court Overturns Fiduciary Rule For Financial Planners

The Year Of The Breach: A Guide To The Major Hacks Of 2017

Posted-In: Brian Nowak DataAnalyst Color Government Regulations Top Stories Analyst Ratings Tech Best of Benzinga


Related Articles (AMZN + BKNG)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Baird Analyst Breaks Down Apple's In-House Manufacturing Report

B Riley FBR's Concerns About National CineMedia Have Been Sufficiently De-Risked