Past comments from new vice-presidential candidate J.D. Vance calling to break-up Alphabet Inc GOOGGOOGL have resurfaced and could point to concerns for big technology companies.
One market strategist isn't worried about the comments or concerns though.
What Happened: The selection of Vance as Donald Trump's running mate could impact several sectors, especially the cryptocurrency industry, which appreciates his pro-crypto stance and Bitcoin holdings.
A call to break up Google could be seen as a negative for big tech companies and could complicate the approval of mergers and acquisitions if Trump is re-elected.
Freedom Capital Markets Chief Global Strategist Jay Woods, however, isn't too concerned.
"I've thought about this one a lot as a Google shareholder," Woods told Benzinga.
The market strategist said a break-up of Google could be epic and reminds him of the Baby Bell breakups that happened previously in the communications sector.
Still, Woods doesn't see Vance being influential in breaking up the company. He noted that vice-presidential picks make headlines for a week and then fade from attention.
"Trump is going to be the one riding this train."
Woods said Trump has been in favor of deals that President Joe Biden has pushed back on.
The market strategist mentioned the airline merger between JetBlue Airways JBLU and Spirit Airlines SAVE as an example.
Why It's Important: Woods said he doesn't believe a Trump administration would prioritize breaking up Google or other major tech companies.
However, the market strategist noted that it’s worth watching, as big tech companies could potentially benefit from splitting off assets.
However, the market strategist noted that it’s worth watching, as big tech companies could potentially benefit from splitting off assets.
Woods called YouTube the giant that Google got a great deal on.
Earlier this year, Vance tweeted, “It's time to break Google up. This matters far more than any other election integrity issue. The monopolistic control of information in our society resides with an explicitly progressive technology company."
Vance has praised Federal Trade Commission Chair Lina Khan, a Biden appointee. In contrast, Republicans have criticized Khan for blocking tech deals.
"I look at Lina Khan as one of the few people in the Biden administration that I actually think is doing a pretty good job," Vance said.
One of the reasons Vance opposes big tech is the perceived control these companies have over online speech. He alleged that Google shows search results “biased towards Democrats,” calling this a “threat to democracy.”
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