Everyone loves to pick stocks based on elections. It combines two American loves: politics and gambling. Today, Bloomberg weighed in on two big names: Google (GOOG) and AT&T (T).
Google will benefit more from an Obama presidency while AT&T stands to benefit is McCain is elected.
Obama is pro net neutrality, which is bad for AT&T:
Before he was a presidential candidate, Obama co-sponsored legislation that would bar cable and telephone companies, including San Antonio-based AT&T, from using ownership of Internet connections to sell owners of sites such as Yahoo! Inc. premium service on their network.
Without such “network-neutrality rules” — which ensure that networks can’t be used to give preferential treatment to one company over another — Obama says the free flow of information on the Internet is threatened.
Obama’s access subsidies, meanwhile, would be good for Google:
[His platforms] include a plan to use about $5 billion in subsidies to provide rural and low-income households with high-speed Internet access. He says the money would come from a decades-old program that now pays for regular voice service for those same homes…
Such a shift in subsidies would directly boost Google and other Internet-service companies by increasing their potential pool of customers.
McCain, on the other hand is extremely close to the telecom lobby:
McCain’s campaign manager, Rick Davis, is a former lobbyist whose clients included BellSouth Corp. and SBC Communications Inc. before they became part of AT&T, as well as Verizon Communications Inc. Charlie Black, a senior McCain adviser, is another former lobbyist and had AT&T as a client.
McCain also is being counseled on policy issues by Michael Powell, a former FCC chairman who led the agency’s efforts to deregulate local telephone companies.
Photo from ABC
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