Has Big Tech reached a top? We are going to outline why we believe Big Tech is going to correct, starting with Twitter (TWTR) and followed by Facebook (FB) Google (GOOG) – and possibly Microsoft (MSFT) and Amazon (AMZN) too. We are excluding Apple (AAPL) from the list, for reasons that Apple has not participated in the same plot as the others.
Short $TWTR $FB $GOOG
Twitter and Facebook have engaged in opinionated censorship of their content[i], including deleting users they disagree with, shadow banning users, deleting content that doesn’t fit into their political views, and other content censorship practices. We don’t believe there is a free speech argument here, they are private companies and have every right to discriminate on their membership. When you join a private network of any kind, you agree to their rules and they set the rules. If you don’t like the rules, you are free to use another service or start your own – that’s how capitalism works. Users who are banned from Twitter have no right to complain as they are free to delete their account and use another service. We believe that has started happening and this trend will greatly accelerate in the coming weeks and months.
Also, Twitter, Facebook, and Google may have contributed to foreign interference in US elections, according to the description in a 2018 Executive Order:
(ii) to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any activity described in subsection (a)(i) of this section or any person whose property and interests in property are blocked pursuant to this order; or
(iii) to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property or interests in property are blocked pursuant to this order.
There are hundreds of credible public reports (here’s one from Cato)[ii] describing China’s direct interference with the 2020 Presidential election, a direct and explicit violation of the EO and other standing laws prohibiting foreign organizations of any kind participating in a domestic political election. Also, China’s growing influence on the media[iii], including Facebook and Twitter, has exploded in the past 4 years. Much of this evidence is being deleted and ‘downlisted’ by firms like Google[iv], so if you want to find this evidence use search engine Duck Duck Go. According to American Thinker:
As you may recall, if your memory hasn't been memory-holed, in pursuit of this main goal, Google/YouTube systematically censored any negative coverage about Biden — most especially reports about Hunter Biden's sexual and drug debauchery and about his corrupt dealings with China and Ukraine, including written evidence and first-person statements about Biden's knowledge of and profiting from Hunter's deals.
Under the current system using the electoral college, Congress decides the President and Congress decided Joe Biden is the winner. But the election remains contested, and transparency advocates will continue to pursue fraud claims in the months and years to come, regardless if Joe Biden is in the White House or not. Many Americans want fair and transparent elections, and 70% of Republicans do not believe the 2020 election was free and fair (it was fixed).[v] That means, investigations will continue, and part of those investigations will have the spotlight on the technology companies that assisted in various forms of election manipulation which might not mean explicitly hacking into election machines. It might take the form of suppressing conservative content, or deleting evidence of fraud (which there was a firehose of).
Conclusion is that this is just the beginning of the trials against Twitter, Facebook, and possibly Google – not only in the courts but in the hearts of their users. Even if we are to use unverified numbers from CFR of 74 Million votes for Trump, that’s 51 Million users who are looking for alternatives to Facebook & Twitter. Facebook has already suffered a situation where advertisers have abandoned the platform[vi] this will only create a pile on effect as the demographic is rapidly shifting to new upstart platforms, open source social media such as WT Social, Gab, Parler, and other alternatives. YouTube is also seeing user declines as users flee to platforms like Rumble and others.
Obviously these companies have large existing business lines. We believe as news is released about the complaints filed against these companies both from competitors, angry users, advertisers, and perhaps the US Government, it will put pressure on the stock sending them lower.
Crediblock.com has a free online tool to chart Short Sale Volume of publicly traded stocks, available here: https://shortdata.crediblock.com/
See $TWTR short volume chart last 100 days:
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[i] https://arstechnica.com/tech-policy/2021/01/facebook-and-twitter-could-be-sued-for-censorship-under-proposed-state-law/ Facebook and Twitter could be sued for “censorship” under proposed state law
[ii] https://www.cato.org/publications/commentary/china-interfering-2020-election-beijing-wants-trump-lose China Is Interfering in the 2020 Election. Beijing Wants Trump to Lose.
[iii] https://www.theamericanconservative.com/articles/chinas-long-tentacles-extend-deep-into-american-media/ China’s Long Tentacles Extend Deep Into American Media
[iv] https://www.americanthinker.com/blog/2020/12/googleyoutube_is_erasing_all_evidence_of_election_fraud.html Google/YouTube is erasing all evidence of election fraud
[v] https://www.politico.com/news/2020/11/09/republicans-free-fair-elections-435488 Poll: 70 percent of Republicans don’t think the election was free and fair
[vi] https://www.cbsnews.com/news/companies-boycotting-facebook-ads-why-different-than-other-boycott/ More advertisers fleeing Facebook as boycott grows