Thursday’s Headlines: Trump vs Big Tech

Thursday’s Headlines: Trump vs Big Tech

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Boston Beer Co. (SAM) +3.3%

Duluth Trading (DLTH) +2.6%

RH (RH) +2.6%

Markel Corp (MKL) +2.3%

Apple (AAPL) +1.8%

Moving Down ⬇️

Eventbrite (EB) -8.3%

Lemonade (LMND) -7.6%

Stitch Fix (SFIX) -6.7%

DraftKings (DKNG) -5.3%

Baozun (BZUN) -5.0%

1. Former President Donald Trump is taking Facebook (FB), Google (GOOG), and Twitter (TWTR) to court over allegations of censorship. After the Capitol riot in January, Trump was banned from the social media platforms over allegations he encouraged a mob of his supporters to storm the government building in Washington. Trump’s lawyers claim that the tech companies have breached his First Amendment rights and say that the tech companies should be treated as government institutions. Experts in the field of law have stated that the lawsuits are deemed to fail as the three firms are private entities, but that hasn’t stopped Trump rallying his Republican voters, fundraisers, and donors to support him. Read more here

2. That’s not all the courtroom drama, 36 attorneys general in the U.S. filed lawsuits on Wednesday against Google over claims that it illegally abused its dominance over the handling of its Google Play store. State attorney’s in San Francisco stated that the Android-maker used anticompetitive practices to ensure that app developers have to go through its Google Play store to reach users, helping it collect an “extravagant” fee of up to 30% on app sales. For example, lawyers say that Google allegedly paid developers to not distribute apps outside of its store after 'Fortnite' maker Epic Games did. The lawsuit marks a fresh attack by government officials and the case could prove very expensive for the ad giant due to the volume of states making claims. See more here

3. Over in China, Tesla (TSLA) just dropped a new, cheaper version of its locally built Model Y to bring in more sales. The Standard Range (SR) Model Y will cost around 276,000 Yuan ($42,591), roughly 20% less than the original longer-range version. After a string of negative publicity that has soured some buyers' sentiment towards the EV maker, the price move hopes to attract new buyers so Tesla can regain its popularity in China. Tesla has a lot of work to do as just two weeks ago it voluntarily recalled over 285,000 cars in China over concerns with its driver-assist system. Shareholders will be keen to see if Tesla can once again dominate in the country that is its second-most-important market. More here