Goldman Says Tech Stocks Were Unfairly Dragged Down by Facebook
'Not a Market for Trading,' Northern Trust CIO Says
This article is for subscribers only.
Most technology companies are nothing like Facebook Inc. So why are their stocks being influenced so strongly by a social network firm?
The question is posed by Goldman Sachs. Strategists led by David Kostin have observed elevated correlations between Facebook and the rest of the industry since mid-March, when Mark Zuckerberg’s company sold off on the Cambridge Analytica scandal. That adds up if the stock in question is Alphabet and Twitter, which rely on user data, but makes less sense for things like gaming or IT services firms.