McDonald says it’s an early-stage step to a long process of the U.S. government pushing back against big tech.
He was particularly bearish, saying he sees big tech declines of 30%-40% over the next 12 months and equities in the sector have not fully priced in the rising political pressure.
James Perthokoukis of the American Enterprise Institute says there is going to be a coming onslaught of regulation and pushes to break big tech companies up.
“Right now the natural allies of these companies which should be Republicans who aren’t going to want to see this government intervention have really turned on big tech,” he said.
“Tech does not have a lot of friends on the left either. This is not just headline risk this is real business risk and it is going to be long term,” Perthokoukis added.