Monthly Archives: January 2021

But the court shifted again, Lakier says, toward interpreting the First Amendment as a grant of almost total freedom for private owners to decide who could speak through their outlets. In 1974, it struck down a Florida law requiring newspapers that criticized the character of political candidates to offer them space to reply. Chief Justice Warren Burger, in his opinion for the majority, recognized that barriers to entry in the newspaper market meant this placed the power to shape public opinion in few hands. But in his view, there was little the government could do about it.

Traditionally, conservatives have favored that libertarian approach: Let owners decide how their property is used. Thats changing now that they find their speech running afoul of tech-company rules. Listen to me, America, we were wiped out, the right-wing podcaster Dan Bongino, an investor in Parler, said in a Fox News interview after Amazon pulled its services. And to all the geniuses out there, too, saying this is a private company, its not a First Amendment fight really, its not? The law that prevents the government from censoring speech should still apply, he said, because these companies are more powerful than a de facto government. You neednt sympathize with him to see the hit Parler took as the modern equivalent of, in Burgers terms, disliking one newspaper and taking the trouble to start your own, only to find no one will sell you ink to print it.

One problem with private companies holding the ability to deplatform any speaker is that theyre in no way insulated from politics from accusations of bias to advertiser boycotts to employee walkouts. Facebook is a business, driven by profit and with no legal obligation to explain its decisions the way a court or regulatory body would. Why, for example, hasnt Facebook suspended the accounts of other leaders who have used the platform to spread lies and bolster their power, like the president of the Philippines, Rodrigo Duterte? A spokesman said suspending Trump was a response to a specific situation based on risk but so is every decision, and the risks can be just as high overseas.

Its really media and public pressure that is the difference between Trump coming down and Duterte staying up, says Evelyn Douek, a lecturer at Harvard Law School. But the winds of public opinion are a terrible basis for free-speech decisions! Maybe it seems like its working right now. But in the longer run, how do you think unpopular dissidents and minorities will fare?

Deplatforming works, at least in the short term. There are indications that in the weeks after the platforms cleaned house with Twitter suspending not just Trump but some 70,000 accounts, including many QAnon influencers conversations about election fraud decreased significantly across several sites. After Facebook reintroduced a scoring system to promote news sources based on its judgment of their quality, the list of top performers, usually filled by hyperpartisan sources, featured CNN, NPR and local news outlets.

But theres no reason to think the healthier information climate will last. The very features that make social media so potent work both to the benefit and the detriment of democracy. YouTube, for instance, changed its recommendation algorithm in 2019, after researchers and reporters (including Kevin Roose at The New York Times) showed how it pushed some users toward radicalizing content. Its also telling that, since the election, Facebook has stopped recommending civic groups for people to join. After Jan. 6, the researcher Aric Toler at Bellingcat surfaced a cheery video, automatically created by Facebook to promote its groups, which imposed the tagline community means a lot over images of a militia brandishing weapons and a photo of Robert Gieswein, who has since been charged in the assault on the Capitol. Im afraid that the technology has upended the possibility of a well-functioning, responsible speech environment, the Harvard law professor Jack Goldsmith says. It used to be we had masses of speech in a reasonable range, and some extreme speech we could tolerate. Now we have a lot more extreme speech coming from lots of outlets and mouthpieces, and its more injurious and harder to regulate.

For decades, tech companies mostly responded to such criticism with proud free-speech absolutism. But external pressures, and the absence of any other force to contain users, gradually dragged them into the expensive and burdensome role of policing their domains. Facebook, for one, now has legions of low-paid workers reviewing posts flagged as harmful, a task gruesome enough that the company has agreed to pay $52 million in mental-health compensation to settle a lawsuit by more than 10,000 moderators.

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Why Is Big Tech Policing Speech? Because the Government Isnt - The New York Times

"Rubin Report" hostDave Rubinreacted to former congresswomanTulsi Gabbards scathing comments against Twitter and Big Tech on Wednesday, saying that tech leaders "coordinated"to remove then-President Trump from social media.

In an interview "America'sNewsroom,",Rubin added the message they sent by banning Trump was that if they can "take out"a sitting president, they can do the same to anybody on their platforms.

During an interview with Tucker Carlson on Tuesday, Gabbard said the Jan. 6 Capitol rioters behaved ike "domestic enemies" but asserted that the "John Brennans, Adam Schiffs and oligarchs in Big Tech" were more dangerous in their attempts to undermineconstitutionally protected rights and turn America into a "police state."

TULSI GABBARD SLAMS SCHIFF, BRENNAN, BIG TECH AS 'MORE DANGEROUS' THAN CAPITOL RIOTERS

DAVE RUBIN:"Look, her language is strongbut, in essence of course she iscorrect.Everyone absolutely condemnsall the violent rioters at thecapitol on January 6.Goes without saying. They're domestic terrorists andthe law should deal with themand by the way theres really nobody arguingthat's not the case.As far as what's going on with Big Tech and the Democrats,they are in effect now decidingwho can say what.It doesn't matter what youthink about what Donald Trumpsaid a day or two before the Capitol event.In essence Big Tech took himout.They coordinated to not onlytake him out so he couldn'tcommunicate on Twitter and say YouTube platforms to get out a message out, but they took him off Spotify, they took him off Pinterest.They coordinated, a few tech leaders to say this guy can't speak ...

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And the message that's sending to you andto me and everyone watchingis if we can take out thePresident of the United States,the sitting President of theUnited States, well, we cantake you out too.And Big Tech just has anextraordinary amount of powerto control the message, tocontrol the tenor of what isbeing said in the United Statesand we just have no idea howthe algorithms are manipulatingus and well, actually I think we do have someidea and it is is not well.Which is why the country sortof feels at odds rightnow ...

Mike Lundell is a good guy. It doesn't matter if everypolitical belief he has fallswithin exactly what they saythe Overton window is on that given day.He is allowed to expresshimself as an American.But, now he can't be on there.And again, who will be next?It is not as if they take outone person and then they all sit down and go OK, we solved the problem.Its we take out one person andnow theres blood in the water and who elsecan we take out? I believethe answer to this is we need to buildnew platforms.We have to build new platforms.I have started locals.com andit has blown up right now.But, we need many solutions to this.We can't have so much power inthe hands of a few.That's what the Founders wereworried about as far as thegovernment, but now it's interms of Big Tech."

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Big Tech has the power to 'manipulate' and 'control the message': Dave Rubin - Fox News

The call for abandoning ideological prejudice in the West, that sounds like, "But out of our affairs, we can do whatever we want to Uyghurs when there are a million in concentration and reeducation camps in our country." And we'll shut down journalists for even mentioning that if they try to operate inside China for that. The idea that the strong should not bully the weak sounds like, "Don't blame the United States. US, you better behave yourself." But what about the way the Chinese are treating Australia right now, or a host of other smaller countries that cross China's political, economic or national security interests? I mean, the willingness of Beijing to really make you pay when you engage in behaviors they don't like, is growing very quickly along with their international capacity to muscle flex.

And then on the pandemic, I mean, China is calling for greater global cooperation, but that also means that they need to cooperate in terms of transparency in what happened with coronavirus. And let's remember that there were, from my perspective, two big obscenities in terms of the world, in terms of coronavirus itself and the pandemic. One is the United States leaving the WHO in the middle of the pandemic, just an extraordinary antithesis of what a country should be doing, a country like the United States. But even more foundational was China lying to the World Health Organization about the lack of human-to-human spread for a month when we could have stopped this thing so much earlier, could have contained it, especially given the capacity we now see that China has to engage in contact tracing, quarantine and lockdown. And they chose not to. And that's a serious problem. For all of those reasons, this speech was not an enormously well-received speech by those watching.

Why did the Italian Prime Minister resign?

Well, I mean, largely it is over disagreement on how money should be spent in terms of massive coronavirus stimulus, sort of like the disagreement, the big disagreement, between Democrats and Republicans on the $1.9 trillion right now. I mean, how green, how sustainable should it be? How much money goes to healthcare? How much money goes to new technologies? How much to the workers? Former Prime Minister Renzi basically pulled out of the governing coalition over disagreements on that. And they weren't able to get a solid majority in a vote of confidence. That makes it much more difficult to governance done. And that's why Conte resigned. He is the 29th Prime Minister since World War II. If he doesn't get elected back in, if they can't put a new coalition together, they will have the 30th in Italy. Italy's kind of like the Doritos of G20 governments. Crunch all you want, they'll make more. That's kind of what we're looking at in Italy. The good news is it's not all that exciting.

Where is the international outrage for what's happening in Ethiopia's Tigray region?

And no question, there's a lot of violence. There are obvious human rights breaches across the board. There's danger of famine. There are tens of thousands of refugees. And this at the hands of a Prime Minister of Ethiopia that had won the Nobel Peace Prize, and some saying he should return the prize, just as they were saying that about Aung San Suu Kyi for some of her nationalist calls to help support minority repression in Myanmar after doing so much to stand up to the authoritarian government. A couple of points here. One is that Ethiopia, talking about this level of conflict at a time when everyone's focusing on coronavirus, everything small and local gets lost in the scrum. But also, Prime Minister Abiy in Ethiopia has led the charge in trying to move away from an ethnic-led federal government, where sort of different groups control political power, to one where it's much more of a traditional political party system, or I should say a modern political party system. And the Tigray in Ethiopia were the group that stood to lose the most party, a minority group that wielded effectively a majority of patronage and power. And so, the willingness to blame Abiy for the violence that we're seeing right now, even though he has the Ethiopian army, there's Eritrean military that's involved. It's an ally of his. I mean, clearly he has more power. But some of the initial violence clearly came at the hands of local Tigray as well who refused to recognize the Ethiopian election process and the suspension because of the pandemic, and instead held their own election, became a breakaway province. And so in these situations, there is so much conflicted narrative in terms of history, and it's very hard to lay responsibility and blame firmly at the hands of one side in this conflict. Those two things together get you why we're not paying as much attention as we perhaps should to a country with over 100 million people in Sub-Saharan Africa, and one of the strongest growth trajectories economically in the entire world.

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Do the Democrats have enough power to rein in Big Tech? - GZERO Media

Business Insider columnist Adam Lashinsky discusses the future of Big Tech in the markets.

European Commission President Ursula von der Leyen urged President Joe Biden to join Europe in their clampdown on big tech, telling theDavos World Economic Forum Tuesday that the world must "address the darker sides of the digital world," which she partly blamed for the U.S. Capitol riot Jan. 6.

"I want to invite our friends in the United States to join our initiatives. Together, we could create a digital economy rulebook that is valid worldwide: It goes from data protection and privacy to the security of critical infrastructure," she said. "A body of rules based on our values: Human rights and pluralism, inclusion and the protection of privacy. So Europe stands ready."

The European Union unveiled draft legislation last month aimed at reining in big tech by making companies more accountable, enhancing privacy, and encouraging competition. Von der Leyen emphasized Tuesday the "need to contain this immense power of the big digital companies."

BIG TECH COMPANIES USING LOBBYISTS TO ENGAGE WITH BIDEN ADMINISTRATION

"The business model of online platforms has an impact and not only on free and fair competition, but also on our democracies, our security, and on the quality of our information," she said."We want the platforms to be transparent about how their algorithms work. Because we cannot accept that decisions, that have a far-reaching impact on our democracy, are taken by computer programs alone."

President Biden has not taken any action on big tech yet, but hetold the New York Times on the campaign trail last year that Section 230, which protects platforms from liability for things users post,"immediately should be revoked."

"[Facebook]is propagating falsehoods they know to be false, and we should be setting standards not unlike the Europeans are doing relative to privacy," Biden told the newspaper's editorial board in January2020.

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There does appear to be a growing bipartisan push to crackdown on big tech.

Dozens of states filed an antitrust lawsuit against Google last monthon the grounds that the company has an illegal monopoly on the online search market. In a separatelawsuit filed against Google last month, 10 states alleged that Google made an anti-competitive deal with Apple to manipulate the online ad industry.

Facebook was also targeted in the flurry of antitrust lawsuits, as theFederal Trade Commission and 48 states and districts accusedthe social media behemoth in a lawsuit last month of using its dominance to squeeze out competitors.

The Associated Press contributed to this report.

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EU urges Biden admin to join Europe in cracking down on big tech - Fox Business

In the week after Donald Trump incited a deadly riot in Washington, D.C., Twitter banned more than 70,000 users including the former president himself. Justin Sullivan/Getty Images hide caption

In the week after Donald Trump incited a deadly riot in Washington, D.C., Twitter banned more than 70,000 users including the former president himself.

Removing disinformation and users who spread it can come at a cost for web hosts and social media platforms. But studies indicate "deplatforming" does stem the flow of disinformation.

Kate Starbird with the University of Washington explains why it's easier to see the effects of deplatforming in the short-term. And NPR's Shannon Bond looks at how one growing social media site is dealing with new attention and new challenges.

Additional reporting in this episode from NPR's Bobby Allyn, who's reported on the removal of Parler by Amazon Web Services.

In participating regions, you'll also hear a local news segment that will help you make sense of what's going on in your community.

Email us at considerthis@npr.org.

This episode was produced by Brianna Scott and Brent Baughman. It was edited by Lee Hale with help from Shannon Bond and Wynne Davis. Our executive producer is Cara Tallo.

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Does Deplatforming Work? Big Tech And The 'Censorship' Debate : Consider This from NPR - NPR

from the oh-come-on dept

Republicans have spent decades holding themselves out as the party of "small government" and "keeping government out of business," while also claiming to be strict supporters of an originalist interpretation of the Constitution. The reality, of course, is something altogether different. Even as Republican politicians often pay lips service to these claims, their policy ideas show the opposite. The top Republican on the House Energy & Commerce Committee has announced the GOP's "Big Tech Accountability Platform" that has an astounding level of government interference not just into business, but into the 1st Amendment rights of all Americans.

The full plan is somewhat astounding (I don't know why it's showing sideways, but I guess download it and rotate it). It opens by paying lip service to the idea of the 1st Amendment, and the value of "more speech" over suppressing speech. But then immediately seeks to undermine the 1st Amendment by suggesting that internet companies should be compelled to host speech they disagree with. It falsely suggests that the decision to suspend President Trump's account was an attack on his conservative views, and not his efforts to incite his supporters into overturning the election. It includes a section on giving law enforcement more access to content and forcing tech companies to become an arm of law enforcement. It (of course!) has a section on protecting "our children."

The whole thing is a censor's dream.

Of course, the GOP has no real power in Congress, especially in the House right now, but that could change quite a bit over the next few years, so we should take these proposals seriously. The key parts of the plan are here:

We could go through piece by piece and explain how these issues are misleading, wrong, silly, or pointless, but I'm sure we'll have plenty of chances to address each point as they start showing up in various bills.

What is clear, however, is that most of this policy is not about any principled stands the GOP may have. Most of it is about spite.

Thank you for reading this Techdirt post. With so many things competing for everyones attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.

Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites especially a site like ours that is unwilling to pull punches in its reporting and analysis.

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Filed Under: 1st amendment, cathy mcmorris rodgers, censorship, content moderation, for the children, gop, responsibility, section 230, transparency

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House Republicans Have A Big Tech Plan... That Is Both Unconstitutional And Ridiculous - Techdirt

Beijing is adding new momentum to efforts in Brussels and Washington to curb the power of big tech companies.

China recently joined the chorus of governments advancing plans to impose new competition obligations on a small cadre of large technology companies, like Amazon.com Inc., Facebook Inc. and Alibaba Group Holding Ltd.

In November, China unveiled its first draft guidelines overseeing competitive behavior by digital giants. The proposals include blocking companies from crunching consumer data to set discriminatory prices, or selling products at prices below cost to gain market share. This month, it also heightened scrutiny of electronic-payment companies, warning that nonbank payment firms, if found to be dominating the market, could face antitrust investigations.

Chinas moves come as the European Union and the U.K. pursue similar efforts. The EU in December proposed a bill that would oblige major digital platforms to refrain from many potentially anticompetitive actions, such as promoting their own products over those of competitors. The U.K. plans legislation empowering a new digital-competition unit to enforce codes of conduct for companies that dominate strategic digital markets.

Driving the proposals are a growing number of policy makers, competition specialists and smaller tech rivals in Europe, Asia and the U.S. who say fresh laws are needed to ensure that new tech rivals can emerge to challenge the digital giants.

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China Joins Global Push to Rein in Tech Companies - The Wall Street Journal

Last week ended with stocks near all time highs and implied volatility near yearly lows.

Looking ahead, SPY options are pricing in just a 1.3% expected move into Friday's expiration, implying a bullish consensus around $388 and a bearish consensus near $377:

With some of the larger tech names set to report earnings this week (including Tesla Inc (NASDAQ: TSLA), Apple Inc (NASDAQ: AAPL),Microsoft Corporation (NASDAQ: MSFT), and Facebook Inc (NASDAQ: FB)), QQQ options are pricing in a 1.9% expected move into Friday's expiration, implying a bullish consensus around $332 and a bearish consensus near $319:

Expected Moves for Companies Reporting Earnings

This week is highlighted by large tech names Microsoft, Apple, Facebook and Tesla. A more complete calendar with expected moves and prior earnings reactions to EPS beats/misses can be found on the Options AI Earnings Calendar.

Microsoft / Reporting Tuesday after hours / 3.7% Expected Move / link

Starbucks Corporation(NASDAQ: SBUX) / Reporting Tuesday after hours / 3.6% Expected Move / link

Apple / Reporting Wednesday after hours / 5.3% Expected Move / link

View more earnings on TSLA

Facebook / Reporting Wednesday after hours / 6.0% Expected Move / link

Tesla / Reporting Wednesday after hours / 7.2% Expected Move / link

Using the Expected Move to Help Inform Spread Trading

The expected move is the amount that options traders believe a stock price will move up or down. It can serve as a quick way to cut through the noise and see where real-money option traders are pricing potential stock moves. On Options AI, it is calculated using real-time option prices and displayed on a chart.

Knowing this consensus before making a trade can be incredibly powerful, regardless of whether you're using stock or options to make your trade. A helping hand with setting more informed price targets as well as a useful basis for starting strike selection.

Here's an example, using Starbucks and its expected move. On the Options AI platform, a trader can select the bullish consensus for spread trades to generate debit call spreads and credit put spreads around the move. Or, if a trader believes that the options market is overestimating the move, a trader can select a neutral view to sell to both the bulls and the bears and generate credit/income generating strategies such as an Iron Condor at the expected move shown here:

Story continues

A closer look at some spread trades to the bullish consensus, compared to stock and a single call:

And a closer look at the Iron Condor, with strikes set at the expected move:

Summary

Remember, the above are just examples of the many ways a trader might express a view using option spreads. They are intended solely to demonstrate how the expected move can provide actionable insight to consider before making any trade, particularly into an uncertain event. Whether gut-checking your own expectations versus the options crowd, generating trade ideas from option market signals, or for more informed strike selection. That's why Options AI puts the expected move at the heart of its chart-based platform.Learn / Options AIhas a couple of free tools as well as education on expected moves and spread trading. The concepts shown in Starbucks can apply to any stock and it is simply used here for illustrative purposes. Expected moves will change slightly into each company's earnings events so be sure to stay up to date via the earnings calendar. We'll be back later this week with previews of Tesla, Facebook and more.

The post What You Need to Know in Options Week of January 25th appeared first on Options AI: Learn.

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2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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What The Options Market Is Saying About The Big Tech Earnings Reports This Week - Yahoo Finance

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The sleeping giant that is Big Tech has awokenand thats been great news for a stock market that was starting to look a little tired.

It was only in our Jan. 18 column that we marveled at the S&P 500s ability to gain nearly 8% since Aug. 31 despite the FAANGs plus Microsoft (ticker: MSFT) sitting out the rally. That all changed this past week as the tech titans found themselves suddenly back in fashion.

The Dow Jones Industrial Average rose just 182.72 points, or 0.6%, to 30,996.98 this past week, and the S&P 500 gained 1.9%, to 3841.47. The tech-heavy Nasdaq Composite jumped 4.2%, to 13,543.06, its biggest gain since the week ended Nov. 6.

Credit Netflix (NFLX), which soared 13% this past week after adding far more subscribers than Wall Street had been modeling, for helping the Nasdaq soar. But it wasnt the only FAANG on the move, with the rest of the group Facebook (FB), Amazon.com (AMZN), Apple (AAPL), and Google parent Alphabet (GOOGL)averaging a gain of more than 8%. They were helped by earnings optimism following Netflixs release and the fact that 10-year Treasury yields stopped going up. Rising yields point to a stronger economy and make fast-growing companies look less attractive on a valuation basis.

Of course, the Federal Reserve will have something to say about that following this coming weeks Federal Open Market Committee meeting. Fed Chairman Jerome Powell and his colleagues had to tamp down fears of an early end to their bond buying earlier this month, so dont expect him to rock the boat. If anything, he will continue to call on the federal government to help bail out the economy with another round of stimulusand he will promise to remain on hold for as long as the economy needs it.

[We] expect Chair Jerome Powell will use his post-meeting press conference to reinforce the message that the Fed would be tightening policy no time soon, writes Capital Economics economist Paul Ashworth. The Fed clearly views its short-lived tightening several years ago as a mistake and is much more likely to err on the side of caution this time aroundto avoid another taper tantrum in the bond markets.

But whats really needed now is progress in combating Covid-19. As the virus goes, so goes the market. In 2020, that meant watching the change in the number of Covid cases for evidence that the reopening was continuing apace. Now, the market is taking its cues from the pace of vaccinations, in particular the percentage of the population that is vaccinated weekly, explains UBS strategist Keith Parker.

The small-company Russell 2000 has been especially responsive to accelerations in the pace of dosingthe number of people getting vaccinated is now over 900,000 a dayand could get a boost if that number continues to increase. By Parkers math, a doubling in the rate could lift the index by an additional 6% to 9% by the middle of the second quarter, and the S&P 500 by 3% to 5%.

The current number of allocated U.S. doses points to potential for the pace to double, though bottlenecks still remain, he writes. Removing bottlenecks for administering doses would present an upside case near-term in our view.

That doesnt mean we shouldnt expect a correctionand perhaps soon. Lori Calvasina, chief U.S. equity strategist at RBC Capital Markets, notes the S&P 500 has been following a pattern typical of recessions since 1990, one that sees the recovery occur in three phases: an initial recovery, a period of consolidation, and a second rebound.

The initial recovery has lasted an average of 10 months, with an average return of 48%. That was followed by a period of consolidation that lasted from two to seven months and saw stocks sink an average of 17%. That was then followed by another rally that saw stocks gain an average of 19%.

The current bounce from the March lows has lasted about 10 months and produced gains of just over 71%. If the market follows the historical pattern, it should pull back by springbut that will be a buying opportunity. My assumption is that well see a continuation of the recovery rather than a double-dip recession, Calvasina says. If you think that, you have to buy the dip.

But it may also be time to add some protection to your portfolio. The markets demand for risky, high-beta, cyclically oriented stocks has meant that stocks with low volatility have gotten left behind. The return differential between the MSCI USA Minimum Volatility Index, which owns a portfolio of low-volatility stocks, and the MSCI USA Index is now at its widest level since 1999, says John Kolovos, chief technical strategist at Macro Risk Advisors. Owning some of these left-behind companies could be the way to add some ballast to a portfolio in case of a drop, Kolovos says.

Buy some utilities, buy some staples, he explains. Those are the most oversold in an environment of market froth and excess.

Just be sure to sell them again once the correction is over.

Read more The Trader:GM and Ford Stock Finally Capture Some of Teslas Heat. Why This Is Only the Beginning.

Write to Ben Levisohn at Ben.Levisohn@barrons.com

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Big Tech Stocks Are Back. Whats Behind the Nasdaqs 4% Rally. - Barron's

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Tech titans stocks rallied during Wednesdays regular session, notching large single-day moves, as investors appeared optimistic with their prospects under the new administration of President Joe Biden.

As Biden took the oath of office in Washington, Alphabet (ticker: GOOGL) fared among the best in big tech, rising 5.4% to $1880.07, which marks a record. Other large tech companies shares fared well too. Amazon.com (AMZN) rose 4.6% to $3263.38, Apple (AAPL) advanced 3.3% to $132.03, and Facebook (FB) climbed 2.4% to $267.48. Microsoft stock (MSFT) rose 3.7% to $224.34 on Wednesday.

Overall theres a view that Biden coming in is going to be bullish for stocks, and especially the tech sector, Wedbush tech analyst Dan Ives told Barrons. Biden will begin ratcheting down China tensions, and there is a massive push around stimulus and spending. Thats going to accelerate an economic rebound in the second half of the year.

Wednesdays rally comes amid bipartisan criticism of the largest U.S. tech companies, and several antitrust legal actions initiated by state authorities and federal agencies charged with regulating their behavior. Investors have largely brushed off foreign and domestic regulatory concerns thus far.

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Ives says the battle between Washington and the tech companies has no end in sight, but at this point, investors dont see a resolution likely for a year or more,thus granting the companies the ability to continue on pace. Its a long term risk for the tech stalwarts, Ives says. But right now, theres still a green light to own tech because a risk of breakups is a longer-term tail risk.

Wedbush remains bullish on tech stocks, and even though there remains risk in many of the large-cap tech stocks, Ives says there is still another 25% of upside ahead. Ives favorite name is Apple because people upgrading their smartphones to 5G models will help sales, and there is little risk of the government breaking up the company.

Ives also expects a strong earnings season. Netflix (NFLX) reported earnings after the close Tuesday, topping 200 million subscribers. The streaming giant said its cash-flow situation had stabilized after years of debt financing to grow its library of video content.

I expect a blowout tech earnings season in the next few weeks, Ives said, adding that cybersecurity companies should report strong results, along with big names such as Facebook, Microsoft, and Alphabet, among others.

Write to Max A. Cherney at max.cherney@barrons.com

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Why Alphabet and Other Big Tech Stocks Rallied Today. - Barron's