Wednesday 09 November 2016 1:14 pm

Here’s what tech stocks are doing after Trump’s win

Shares in Google parent Alphabet, Apple and Amazon were down more than two per cent in pre-market trading on Wednesday after Donald Trump clinched victory from Hillary Clinton to become the next President of the United States.

Many of the firms hold billions of dollars in profits offshore so they don't have to pay a 40 per cent corporation tax in the US, but Trump's promise to reduce corporation tax for firms repatriating profits has apparently failed to ease investors concerns.

"His proposed reduction in corporate tax rate (if implementable) could clearly lift earnings of companies across the board, but comparatively, the international footprint of many technology companies has mean that they have been adept at keeping their tax rates relatively low so we would expect other sectors to benefit more," said Dan Ridsdale, head of technology at Edison Investment Research.

Liberal Silicon Valley was largely against Trump with top entrepreneur and investor Peter Thiel his most outspoken supporter, breaking ranks with consensus.

After Trump's triumph, Thiel said his task ahead was " awesomely difficult".

"Congratulations to President-elect Donald Trump. He has an awesomely difficult task, since it is long past time for us to face up to our country's problems. We're going to need all hands on deck," he told CNBC.

Many in the tech industry have raised concerns over Trump's stance on immigration.

"His anti-immigration stance is potentially the most obvious issue for technology companies, but while he has stated his opposition to the H1-B speciality occupation non-immigrant visas, he has also said that he supports highly skilled immigration, " said Ridsdale.

The same goes for trade, with Trump wanting to rip up existing deals with other countries, while he famously singled out Apple for making its iPhones in China, calling for this kind of manufacturing to be returned stateside.

He also called for a boycott of the company earlier this year when boss Tim Cook said it would not give the FBI access to the phone of the San Bernadino shooter.

Hillary Clinton had detailed many plans for the tech sector, even pledging support for blockchain which has picked up attention elsewhere in the US government.

He does however, own stock in Alphabet, Apple, Amazon and himself owns and iPhone.

"Clinton was seen as the more technology friendly candidate although Trump has offered few detailed positions on technology policy and there will inevitably be major differences between what Trump has said he will do and what he does do or what can do," said Ridsdale.

"Nevertheless his electoral thrust has been on rejuvenating the traditional manufacturing sector ahead of supporting its thriving technology community."

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