Facebook Will Prevail in DOJ Big Tech Antitrust Probe: Wedbush Analyst

The transcript discusses Facebook's market dominance and potential anti-competitive behavior, focusing on advertising and regulatory challenges. It highlights the outdated nature of current laws and the political debate surrounding antitrust actions, particularly in relation to Facebook's acquisition of WhatsApp. The discussion includes perspectives from political figures like Elizabeth Warren and comparisons to past political promises.

What is one reason the analyst believes Facebook has a legal advantage?

• The laws were drafted in the 1930s and do not account for the Internet.

• Facebook's services are free for consumers.

• Facebook has a strong legal team.

• The company has a monopoly on social media.

What is Senator Warren's main concern about big tech companies like Facebook?

• They are not environmentally friendly.

• They are not innovative enough.

• They have too much power over the economy and society.

• They do not pay enough taxes.

According to the analyst, why might existing antitrust laws struggle to force divestiture within Facebook?

• The laws are not enforced properly.

• Facebook has too many subsidiaries.

• The laws do not allow for divestiture unless fraud is proven.

• The laws are too strict.

What is the analyst's view on the allegations against Facebook regarding WhatsApp?

• The allegations are likely true.

• The acquisition was purely for competitive reasons.

• The acquisition was similar to Apple's acquisition of Beats.

• WhatsApp was intended as an ad platform from the start.

What does the analyst suggest about the future of advertising in relation to text-based services?

• Advertising will only grow in video platforms.

• There is a big opportunity for advertising to migrate to text-based services.

• Advertising will decline in text-based services.

• Text-based services will remain ad-free.