Digital Stocks Steady Amid Rancor Between Trump and Silicon Valley
Big technology stocks remain unfazed — some have even hit all-time highs since the election — but now the tech industry has to "rethink how to get the ear of the emperor," says SouthBay Research's Andrew Zaitlin.
Wall Street pretty much has remained unfazed in the face of tough talk from some of Silicon Valley’s biggest chief executives against President Donald Trump during his first month in office. But analysts say there could be a delicate dance ahead as the tech industry unleashes its army of lobbyists to curry favor with Trump on everything from net neutrality to allowing guest workers into the country.
“Silicon Valley is spending $50 million in lobbying, and now they just found out they’re on the outside looking in,” says SouthBay Research’s Andrew Zaitlin. “Now they have to rethink how to get the ear of the emperor.” Amazon CEO Jeff Bezos tweeted he would give the president “my most open mind.” But his company was one of 128 that filed court papers against the travel ban that tech players believe will hurt their business.
Despite the rancor, investors are betting both sides will work it out, with shares of the biggest U.S. tech companies hovering at 52-week highs and the tech-heavy Nasdaq at an all-time peak.
This story first appeared in the Feb. 24 issue of The Hollywood Reporter magazine. To receive the magazine, click here to subscribe.