The potential breakup of tech giants like Amazon or Google could lead to increased efficiency, competitiveness, innovation, job creation, and shareholder value. Empirical evidence suggests that independent companies may become more valuable in the long term post-breakup. Shareholders typically benefit from spins or breakups, as seen in eBay spinning off PayPal. Breakups are beneficial for competition, labor, profitability, and the ecosystem in general. The only entity that might not benefit from a breakup is the CEO seeking dominance over a larger conglomerate. Overall, breakups appear to be a positive move for the market, competition, and various stakeholders.
Kara and Scott take another look at non-compete agreements: where do they actually make sense? Plus, as the Fed holds interest rates steady, what factors are really affecting inflation? And, with another leadership shakeup at Peloton, can the pandemic-era fitness darling survive? All that and more, including what Big Tech regulation would do to stocks, and some positive thoughts for the rest of the year.
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