Big tech stocks barely twitched a day after members of Congress recommended breaking up portions of their underlying businesses, but investors should be ready to buy if stocks fall in the future, CNBC’s Jim Cramer said Wednesday.
“The time these big tech stocks get hit by some bad headlines from the House Judiciary Committee is the time you need to buy them.”Bad money“said the host.” Regardless of who wins the White House next month, they won’t turn back 40 years of antitrust law. “
The comments come on the Heels of a report by the Democratic Congress staff Updates to the country’s antitrust laws and the restructuring of the activities of the largest US technology companies were called on Tuesday. The report accuses Apple, Amazon, Facebook and Alphabet subsidiary Google of having monopoly power.
Facebook was the only one of the three stocks to fall in Wednesday’s session, falling 0.2% to a closing price of $ 258.12. Amazon was up 3% to $ 3,195.69, beating the nearly 2% gains that top averages saw.
The findings come from a 16-month investigation led by the House of Representatives ‘Antitrust Subcommittee on companies’ competitive practices. The authors call for structural separations and prevent companies from treating their own services preferentially on their platforms.
While members of the bipartisan panel concluded that the tech giants who hit $ 5 trillion in market cap have monopoly exploits in their business models, Republicans and Democrats in Congress are at odds over how to address their concerns should.
Cramer went against the legislature and on the side of the companies and highlighted their relationships with the business community.
“”Apple, Amazon, alphabet and Facebook I can credibly argue that they are our national champions who make small businesses thrive, “said Cramer, who advocates treating businesses cheaply to give the US a competitive advantage over other nations.” That is a compelling argument. “”
“These companies have created incredible fortunes, both for themselves and for their shareholders. I think we should let them keep doing that.”
Alphabet, Amazon, Apple, and Facebook are the epitome of American power in the internet, e-commerce, telecommunications, and social media.
While Cramer acknowledged that monopolies are bad for competition and entrepreneurship, he praised businesses for their role in helping small businesses reach out to consumers.
Former Microsoft CEO Steve Ballmer, who led the software giant through his own chapter of a Congressional antitrust investigation, gave his opinion on the whole ordeal on CNBC Wednesday. Los Angeles Clippers owner doubts the companies will ultimately be forced to part ways, despite advising management to get involved [regulators] Now to the problems. “Microsoft resigned itself to the Justice Department in 2001 to prevent the company from being forced to disconnect its Internet Explorer browser from Windows.
However, Cramer said he was not entirely convinced that Alphabet, Amazon, Apple, or Facebook were monopolies, although the allegations are more compelling for some than for others.
“There’s no doubt that these companies have become much more powerful, but that’s because they create incredible things. We can’t live without them,” said Cramer. “While they have destroyed some competitors, they have also created entire industries filled with small businesses.”
Disclosure: Cramer’s charitable foundation owns shares in Amazon, Alphabet, Apple, Facebook, and Microsoft.