Tech shares fall after congress grilling
NEW YORK, USA – Technology shares were dragged lower by Facebook and Twitter on Wednesday, September 5, following tough questioning of their top executives by Congress as US stocks ended mixed.
Executives from the two social media companies, Facebook's Sheryl Sandberg and Twitter's Jack Dorsey, acknowledged they had been caught off guard ahead of the 2016 US elections when their platforms were manipulated by Russian interests, but said they were taking steps to address the problem and pledged more action ahead.
The hearing elevated the prospect of tougher regulation from Washington on technology companies, an idea furthered later Tuesday when the US Justice Department said it would probe whether the platforms were stifling conservative ideas.
Shares of Facebook and Twitter fell, along with Apple, Google-parent Alphabet and Microsoft. The Nasdaq finished down 1.2 percent to 7,995.17, with Facebook shedding 2.3% and Twitter losing 6.1%.
Other tech shares were also mostly lower, including Apple which slipped 0.7%, Microsoft which dropped 2.9% and Google-parent Alphabet which lost 0.9%.
"When major companies testify in front of the Congress it's never a good thing" for their stock price, said Tom Cahill, portfolio strategist at Ventura Wealth Management.
"We know there is going to be an increase in regulation, we don't know yet what form it will take." – Rappler.com