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Evercore ISI managing director and head of internet research Mark Mahaney outlines the three biggest risks for Big Tech giants Alphabet (GOOG, GOOGL), Amazon (AMZN), and Meta Platforms (META) to maintain continued growth at the same rate.
Mahaney kicks off his list of Big Tech risks with "the big wildcard": Alphabet's antitrust lawsuit. "Barring new regulatory changes, and I and I do think the one that's most in the crosshairs here is Google, which is undergoing which has been found to be a monopolist and is undergoing a remedies trial for that," he tells Julie Hyman and Josh Lipton
Another challenge could be currency weakness, as the strength of the US dollar (DX=F) could hit large multinational companies that have significant international sales, which could slow growth.
The final risk is valuations. "We've had a phenomenal two-and-a-half-year bull market for equities, but particularly for the large-cap, high-quality growth names ... [And] that only can continue for so much longer," Mahaney tells Yahoo Finance.
Mahaney adds that "the single biggest change" he expects to come out of President-elect Donald Trump's return to the White House is antitrust regulation.
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This post was written by Naomi Buchanan.