When the Dow Jones Industrial Average fell nearly 900 points in two days following the knee-jerk market reaction to the surprise Brexit vote, American traders learned very quickly that European politics can have a big impact on U.S. stocks.
Here’s a closer look at the direct impact the Brexit will have on three of the most popular U.S. internet stocks:Facebook Inc (FB),Alphabet Inc (GOOG,GOOGL) andAmazon.com, Inc(AMZN).
Facebook Inc (FB)
More than half (54%) of FB’s revenue coming from outside the U.S., and 24% of that revenue comes from Europe. FB stock traders can’t afford to ignore the Brexit.
CNBC’s Julia Boorstin reported last week that FB won’t lose European users, but a recession in Europe could cost the company advertising dollars.
Despite the uncertainly involving the Brexit, Cantor Fitzgerald analyst Youssef Squali believes traders should buy high-quality internet stocks like FB, GOOG and AMZN on any post-Brexit dips. Squali expects that the Brexit will have “no meaningful impact” on Facebook’s earnings.
FBN Securities agrees that FB’s Europe exposure is “relatively low” and names FB stock its top technology pick.
Alphabet Inc (GOOG, GOOGL)
GOOG’s biggest Brexit-related threat may not come…
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