The dreaded May 25 deadline for the General Data Protection Regulation has come and gone, and tech’s biggest players haven’t just survived but are thriving.
Evercore ISI analyst Anthony DiClemente and his colleagues took a look at daily active user trends from mobile-analytics firm Sensor Tower over the weekend for Facebook (FB) and Twitter (TWTR) and found “no observable impact” from the stringent new rules on data privacy in Europe.
Indeed, daily trends were “slightly better” than during the previous two months, indicating that larger ad platforms were “near-term winners,” according to Evercore. The reason, legal experts say, is that larger companies have been able to absorb costs necessary to comply with GDPR rules, while smaller competitors have either exited Europe or downscaled operations to avoid punishing fines.
“It feels like GDPR may prove more Y2K 2.0 than the end of the internet in Europe,” DiClemente said in a note today, alluding to the false scares around the so-called millennium bug in 2000.
Evercore concluded Facebook and Alphabet division Google (GOOGL) have “seen EV/EBITDA multiples remain essentially stable” so far this year while Amazon.com (AMZN), Salesforce.com (CRM), Netflix (NFLX), Microsoft (MSFT), and ServiceNow (NOW) have seen multiples expand by an average of more than 30%.
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