From Brad Hoppmann: If you’re a member of the Silicon Valley elite, why hesitate when it comes to letting the president-elect know what you need?
That’s precisely the attitude exemplified by leaders of such stalwart internet firms Alphabet (GOOGL), Amazon (AMZN) and Facebook (FB), as they crafted a letter to Donald Trump detailing their industry’s policy priorities.
The letter was sent on Monday by the Internet Association, an industry trade group whose members also include Twitter (TWTR), Uber and some 35 other companies. The note represents an attempt to engage with the GOP businessman.
The effort comes in the wake of what was a contentious relationship between the industry and Mr. Trump throughout the election.
Even a Reuters story described the industry’s attitude toward Mr. Trump as “almost universally disliked and at times denounced in Silicon Valley during the presidential campaign.”
So, just what does Silicon Valley have on its list of priorities and concerns for President-elect Trump?
Perhaps more importantly, is there an angle here for investors to profit from?
According to the letter, the industry is concerned with a variety of issues. Those include the need for:
Preserving and protecting strong encryption tools.
Instituting immigration reform via allowing more H-1B visas for skilled workers.
Maintaining liability protections from content that users share on their platforms.
These priorities are thought to be somewhat at odds with what candidate Trump proposed during the campaign.
For example, Mr. Trump came out against Apple (AAPL) in its battle with the FBI over creating essentially a new tool to unlock the encryption in the company’s iPhone.
That issue arose as law enforcement wanted to increase its tools to combat terrorist activity in the aftermath of last December’s San Bernardino, Calif., shootings.
Related story: Apple Defies Feds, Says No to ‘Overreach’
The industry supports strong encryption in its products. And it is collectively against efforts by law-enforcement agencies to mandate access to data for criminal investigations.
On the immigration front, the internet industry supports the idea of allowing more high-skilled technology workers into the country. It also supports reform to allow these workers to remain in the U.S. for extended periods.
Mr. Trump famously railed against illegal immigration into the country. Yet on the issue of skilled workers and more H-1B visas, there doesn’t currently seem to be a strong stance on the issue from the Trump camp.
The industry does seem encouraged by one comment that Mr. Trump made on immigration and skilled workers during a March debate. There, he said he was for … “softening the position, because we need to have talented people in this country.”
The industry also is concerned with some of the language Mr. Trump used regarding “closing off” parts of the internet to limit radical Islamist propaganda.
The industry is staunchly against any efforts to close off the internet. However, the big social networking firms are currently engaged in efforts to shut down hateful, violence-inciting groups such as ISIS and its affiliates.
What I think this industry letter highlights are not only the issues where Silicon Valley is concerned over a Trump administration, but also some of the areas where investors can profit due to that concern.
|Big techs didn’t participate in the post-election rally. Amazon lost 8.7%, Facebook fell 7.3%, Google dropped 7.2% and Apple fell 4.8%.|
For example, the big issue with encryption is a part of the overall need to enhance cyber security capabilities.
As we witnessed during the election, cyber hacks and the subsequent leaks of private information helped shape the narrative of the race — and some say possibly even altered the outcome.
This cyber-hacking trend is something that companies, governments, private organizations and private individuals are intent on combating in this 21st-century online world.
For investors, the key here is to identify companies in this space that are positioned to take advantage of the growth in the cyber security world.
In fact, that’s just what subscribers to my Cash Flow Kings newsletter will be doing later this week. Right now I’m putting the finishing touches on their newest recommendation, in a company whose protective technology I believe our president-elect will be taking a very big interest.
If you’d like to make sure your name is on the list the moment I send out this brand-new recommendation, then I invite you to check out Cash Flow Kings. It’s easy to get started — just click here now.
This article is brought to you courtesy of Uncommon Wisdom Daily.