Facebook has been on everybody's (but mostly the east coast press and Apple's Tim Cook) target list since the 2016 election, and now co-founder Chris Hughes has entered the fray with an NYT (of course) exposé calling for the break up of Facebook.
I’m disappointed in myself and the early Facebook team for not thinking more about how the News Feed algorithm could change our culture, influence elections and empower nationalist leaders.
What a narcissistic ass .That being said, if you think Facebook is going to be broken-up by the Federal Trade Commission, then you should load-up on some Facebook stock! I guarantee you that there are already hedge funds buying Facebook stock today, on the premise that the company might get forcibly split into separate Facebook, Instagram and WhatsApp entities. The historical research is solid, when it comes to company spinoffs outperforming the broader market indexes. This performance is the basis for activist hedge funds and specialty ETFs, alike. Activists have no power over Facebook, because Mark Zuckerberg controls a majority of the voting shares. But activists do have some power over congress.
I don't think this is a compelling case to run out and buy Facebook, today. Were the government to get serious about looking into the Facebook monopoly, the stock would likely get a whole lot cheaper real fast! At that point, the risk/reward will be fairly interesting.