Market Overview

Tech Stocks Fall Amid Twitter, Facebook Senate Testimonies

Tech Stocks Fall Amid Twitter, Facebook Senate Testimonies
Related FB
Guggenheim: WWE's 'Mixed Match Challenge' Partnership With Facebook Is Paying Off
Bulls & Bears Of The Week: Apple, Facebook, Home Depot, JCPenney And More
RIP FANG (TalkMarkets)
Related TWTR
Q3 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolio
Loup Ventures: Facebook, Twitter Should Let Users Filter Political Content From News Feeds
Tracking David Einhorn's Portfolio - Q3 2018 Update (Seeking Alpha)

Facebook, Inc. (NASDAQ: FB) COO Sheryl Sandberg and Twitter, Inc. (NYSE: TWTR) CEO Jack Dorsey on Wednedsay testified before the Senate Intelligence Committee. A representative from Alphabet (NASDAQ: GOOGL)’s Google failed to attend, which Sen. Mark Warner warned will hurt the company’s reputation.

What Happened

Sandberg and Dorsey were grilled about potential election interference, as well as allegations of bias, before making announcements pertaining to their company’s focus on removing pages with inauthentic behavior.

When a company within such a prominent industry exhibits transparency such as this, stocks generally react in some way, but TD Ameritrade's trader strategy manager Shawn Cruz anticipated a minimal reverberation.

"I don't think there's going to be anything earth-shattering that will impact how investors view those companies... With the tech companies, I think a lot of the regulatory risk is already priced in," Cruz told Benzinga.

Despite the companies’ best efforts to defend their brands, tech stocks reacted conversely.

Stock Activity

Several tech stocks saw heavy selling pressure shortly after Wednesday's opening. At time of publication:

Facebook shares were down 2.5 percent at $166.78.

  • Twitter shares were down 5.8 percent at $32.80.
  • Google shares were down 1.1 percent at $1,197.19.
  • Square, Inc. (NYSE: SQ) shares were down 4.1 percent at $87.15.
  • Netflix, Inc. (NASDAQ: NFLX) shares were down 5.5 percent at $343.43.
  • The Meet Group, Inc. (NASDAQ: MEET) shares were down 4 percent at $4.88.
  • Match Group, Inc. (NASDAQ: MTCH) shares were down 3.2 percent at $50.62.
  • World Wrestling Entertainment, Inc. (NYSE: WWE) shares were down 2.8 percent at $86.19.
  • Roku, Inc. (NASDAQ: ROKU) shares were down 1.52 percent at $61.68.
  •, Inc. (NASDAQ: AMZN) shares were down 2.2 percent at $1.993.17.

What’s Next

The Justice Department said Wednesday it has convened a meeting with state attorneys general to discuss concerns that social media platforms were “intentionally stifling the free exchange of ideas.”

According to Sen. Warner, lawmakers will continue to meet with social media companies going forward. Will tech stocks continue to suffer in light of Congressional involvement and regulation?

Related Links

These Charts Help Illustrate The Recent Struggles Of Facebook And Twitter

Pros: Cisco Isn't Getting The Attention It Deserves

Posted-In: Donald TrumpGovernment News Top Stories Exclusives Movers Tech Trading Ideas Best of Benzinga


Related Articles (FB + GOOGL)

View Comments and Join the Discussion!

Podcast: Burger Stocks, Tasty Or Not?

6 Reasons Why Deutsche Bank Is Bullish On Post-Bankruptcy Caesars Entertainment