The sum of Facebook’s parts would be more valuable if it was to be broken up as a result of the ballooning political risk faced by the social media giant, according to head of US equities at Artemis Investment Management Cormac Weldon.
Weldon, who manages the Artemis US Equity, Select and Smaller Companies funds, said a split would improve the profitability of Facebook's businesses, such as WhatsApp, and he would "probably" own more of the firm overall as a result. Miton's Grieves: Are we approaching peak FAANG? Speaking to Investment Week, Weldon said Facebook and other FAANG stocks are "going through a period of political difficulty", with governments increasingly concerned about the firm's influence and its digital privacy policies. As a result, he explained, Facebook could face regulatory intervention, includ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
