3 Tech Stocks to Buy to Benefit From Antitrust Action

  • The Trade Desk (NASDAQ:TTD): Adtech innovator that has already taken steps to compete with Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google.
  • eBay (NASDAQ:EBAY): Former leading e-commerce market that has been pushed down by Amazon’s (NASDAQ:AMZN) monopolistic power.
  • Yelp (NYSE:YELP): Review platform that has already standed against Google.
A man working on digital tablet and smart city with binary, html computer code on screen. representing tech stocks
Source: Shutterstock

Last week, talk of a pending antitrust bill forced tech stocks down. Specifically, Alphabet, Amazon and Apple (NASDAQ:AAPL) fell after the U.S. Department of Justice (DOJ) backed The American Innovation and Choice Online Act. The proposed bill would curb Big Tech’s monopolistic power, preventing companies from favoring their own products and services. For legislators pushing this reform, Big Tech’s power represents a threat to open markets. Now with shares down, however, investors are wondering which antitrust tech stocks to buy on the news.

News of the American Innovation and Choice Online Act has been circulating since January 2022, when it received bipartisan approval from the Senate Judiciary Committee. Some critics argue the bill unfairly targets a handful of large companies. Still, proponents stand behind limiting the power of a few big players to allow for more free and fair competition. If the bill is passed, it could usher in a new era of tech plays.

The Big Tech giants targeted by this bill have a history of acquiring competitors. However, the smaller firms that continue to rival them now have a clear opportunity to secure more market share. So, let’s take a more in-depth look at the tech-focused antitrust picks set to benefit from this new regulation.

TTD The Trade Desk $74.61
EBAY eBay $56.68
YELP Yelp $35.00

Tech Stocks to Buy: The Trade Desk (TTD)

The logo for The Trade Desk is displayed on a smart phone.
Source: Tada Images / Shutterstock.com

Google may not have any serious search engine competitors, but this adtech innovator has been closing in on the company’s ad business for months. As InvestorPlace contributor Chris Lau reports, “few advertising firms get better data-driven decisions than that offered by The Trade Desk.” TTD has displayed impressive growth as well as significant partnerships. What’s more, its Open Path product allows it to directly compete with Google.

The Trade Desk describes itself as an “independent media buying platform designed for the open internet.” In February 2022, it also released Open Path to “enable publishers to solicit bids directly from its advertising clients.” The product is mainly focused on reducing the industry’s dependence on Google — and it’s arriving at an excellent time.

TTD stock certainly stands to benefit from the new antitrust bill. The platform is already working hard to provide users with an alternative to Google Ads. Further search-engine visibility will expose the company to new clients, sending shares up.

eBay (EBAY)

ebay app on a smartphone
Source: BigTunaOnline / Shutterstock.com

EBAY is the next name on this list of tech stocks to buy. Before Amazon, eBay dominated the e-commerce world. As InvestorPlace contributor Faizan Farooque notes, though, “Many people feel eBay is yesterday’s news.”

That may no longer be the case, however. As Farooque notes, eBay saw net income and net revenue year-over-year (YOY) growth of 133% and 5.4% respectively in the fourth quarter of 2021. The company has been working hard to remain relevant as well. In February, for instance, CEO Jamie Iannone implied eBay may soon accept crypto. Last year, eBay also ranked third by market share compared to other U.S. e-commerce companies, trailing only Amazon and Walmart (NYSE:WMT).

This company has competed with Amazon even in the worst of times. Now, the pending bill could give EBAY stock the edge it needs. According to CNBC, the bill would prevent Amazon from “giving its own private label products a better ranking in its search than a third-party competitor.” It may also prompt sellers to return to the eBay platform.

Tech Stocks to Buy: Yelp (YELP)

Source: BigTunaOnline / Shutterstock.com

No company has been able to really compete with Google as a search engine. That said, some are still fighting for market share in certain search verticals. Specifically when it comes to online reviews, both Yelp and Tripadvisor (NASDAQ:TRIP) are working hard to be seen. If the pending bill limits Google’s power to favor its own content, that could help boost traffic for both names. What sets Yelp apart, however, is its dynamic reach. Yelp offers reviews that span a variety of niches and industries.

This pick of the tech stocks has also already taken steps to curb Google’s power. In October 2020, it accused the tech conglomerate of “anticompetitive” behavior in a blog post. The company also claimed Google’s reviews featured “objectively lower quality information.” Yelp knows how much it can gain from a bill limiting the power of Big Tech. Investors considering YELP stock should understand that as well.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

Article printed from InvestorPlace Media, https://investorplace.com/2022/04/3-tech-stocks-to-buy-to-benefit-from-antitrust-action/.

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