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Top U.S. Tech Companies Face Antitrust Uncertainty

By U.S. News & World Report

As the digital age matures, a handful of tech stocks are capturing an increasingly dominant share of internet business. Shareholders of Amazon.com (ticker: AMZN), Alphabet ( GOOG, GOOGL) and Facebook ( FB) love the companies’ best-of-breed positioning in their respective businesses. But the more market share these companies gain, the more exposed they are to violating U.S. antitrust laws.

Alphabet shareholders are well aware of the potential fallout from antitrust violations. In June, Alphabet received a record $2.7 billion antitrust fine from European regulators. So far, Google, Facebook and Amazon haven’t faced much antitrust scrutiny from U.S. regulators, but the more successful the companies are, the more that possibility becomes a concern for long-term investors.

[See: 10 Smart-Beta ETFs That Will Help You Get Your Alpha.]

MKM Partners analyst Rob Sanderson recently took an in-depth look at the exposure Google, Amazon and Facebook may have to antitrust regulations in the years ahead. According to Sanderson, these companies aren’t currently violating U.S. antitrust laws, but laws could change in years ahead.

“Projecting current trends forward, we do see potential for unwanted outcomes over time and expect a movement to examine current antitrust laws, for which the monopoly framework is over a century old,” Sanderson wrote last week.

The Sherman Antitrust Act, the basis for current U.S. antitrust regulatory action, was enacted more than 125 years ago in 1890. “We think it’s likely that this new era of global platforms, massive scale and deflationary/disruptive forces will bring new regulation to deal with new-world problems,” Sanderson says in his note.

For regulators, the targeted metric will likely be market share, but market share can be interpreted in different ways.

[See: 10 Ways for Investors to Buy the Market.]

According to MKM Partners, Google accounted for just 19 percent of total U.S. media ad sales in 2016. But when considering online ad sales only, Google accounted for more than 50 percent, MKM says.

In terms of social media, Sanderson describes Facebook’s market positioning as “absolutely dominant.” “Facebook’s $12.5 billion of advertising revenue generated in the U.S. last year represents over 80 percent of third-party estimates for social media spending,” Sanderson says.

While Amazon is often mentioned as the poster child for U.S. e-commerce disruption, MKM Partners says Amazon accounted for just 30 percent of total U.S. e-commerce sales in 2016. However, when it comes to total industry growth, Amazon’s share increased to 41 percent in the most recent quarter.

[See: 7 of the Best Cheap Stocks to Buy Under $10.]

MKM maintains “buy” ratings on Alphabet, Facebook and Amazon stock.

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Top U.S. Tech Companies Face Antitrust Uncertainty originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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