Reuters/Nick Didlick
- Large internet companies like Facebook and Alphabet are under scrutiny for how their users’ data is handled.
- Morgan Stanley’s equity strategists are among those cautious on internet stocks.
- Instead, they’re recommending two subsectors that aren’t facing the same turmoil.
Tech companies have taken a beating in the stock market of late, but Morgan Stanley’s equity strategists are cautioning about lumping them together.
The chief concern has centered on how Cambridge Analytica used Facebook users’ data that had been gathered in a personality quiz to target US voters for the 2016 election. It’s raised concerns of more regulation on large internet companies, which are already in the crosshairs of European authorities. See the rest of the story at Business Insider
NOW WATCH: Wall Street’s biggest bull explains why trade war fears are way overblown
See Also:
- One Wall Street firm just made a big change to its outlook — and it perfectly encapsulates the challenges ahead for markets
- GOLDMAN SACHS: There’s one huge mistake traders should avoid making this earnings season
- MORGAN STANLEY: Internet companies could be stuck ‘in the penalty box’ for a while — here are the corners of tech we’d rather own
