In short, the things that people would point to as ‘infringements’ are the very reasons they make our lives easier and why we use them.
Your portfolio is fine
Finally, these companies are financially strong (or at least gaining strength). It is a funny, and very telling fact, but according to Google Trends the day after the PRISM story broke, users searching the internet were twice as interested in the search term “National Donut Day” as they were in “PRISM.”
Wall Street’s response to PRISM was equally nonplussed. Not a single one of the companies named by the leak as providing data to the NSA saw their stock take a hit. In fact, they all finished the day up, and Google Inc (NASDAQ:GOOG) added another $15 to its stock price. On Friday, June 7, the NASDAQ was up as a whole. As one day does not make a trend, let’s keep in mind that since mid-2011, Google has beaten the market by 54 percentage points.
In addition to that, holders of Apple’s stock (those who have weathered the storm these last few months) may be receiving their long-awaited reward for additional reasons. Many analysts have tried to call the bottom in Apple since its fall from the peak of above $700 last September. Now, supporters are looking at a record-breaking stock-buyback program, an amazing valuation, a technical breakout in the stock chart and a ramp-up in the current uninspiring product cycle. The fact that Apple Inc. (NASDAQ:AAPL) wasn’t phased by last week’s news could be evidence of a turnaround. Some believe the stock is poised to rise at least 10% this summer to above $500.
Analysts expect Apple Inc. (NASDAQ:AAPL) to generate $43.89 of earnings per share next year, up only 11% from this year’s forecast. This estimate also doesn’t factor in any product launches over the next few years and it need not be said that ‘Apple’ and ‘innovation’ go hand-in-hand. In recent sessions, the stock was up 4.5% to $446.30.
Google Inc (NASDAQ:GOOG) seems to be getting the nod from most analysts, seeing top-line growth padded by the Motorola acquisition, and organic growth consistently hitting double-digits in recent quarters. The company is reportedly finalizing a deal to purchase mobile-traffic app company Waze for just over $1 billion. The deal would keep Google ahead of Apple Inc. (NASDAQ:AAPL) in the realm of mobile mapping. The stock is currently sitting at $880. Facebook Inc (NASDAQ:FB) is also seeing signs of life, slowly making its way to just over $24 per share.
According to Silicon Valley Business Journal, “On June 7, Facebook and Google Inc (NASDAQ:GOOG) again denied providing the government direct access to its servers, saying the only provide user data under applicable laws.” Facebook Inc (NASDAQ:FB) is said to have received somewhere between 9,000 and 10,000 user data requests from federal, state and local authorities over the last six months.
At a recent shareholders meeting, Facebook CEO Mark Zuckerberg asked for investors to have patience when it comes to stock performance. Zuckerberg noted that Facebook Inc (NASDAQ:FB) is growing quickly in terms of mobile. He noted that roughly 30% of the company’s total revenue now comes from its mobile applications (compared to nearly zero last year).
Summary
Wall Street has spoken. The American people have shrugged. PRISM seems to be labeled as something to be tolerated, and nothing to worry about.
Bill Edson has no position in any stocks mentioned. The Motley Fool recommends Apple, Facebook, and Google. The Motley Fool owns shares of Apple, Facebook, and Google.
The article PRISM: Should Tech & Social Media Investors Brace for Impact? originally appeared on Fool.com.
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