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About a month ago, a federal judge filed an antitrust lawsuit against Facebook Inc. (NASDAQ:FB) out of court.

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He ruled that the Federal Trade Commission and several states do not provide enough evidence that Facebook has monopoly control over social media.

However, if you thought this was the end of Washington’s efforts to contain Silicon Valley and big tech, think again.

Indeed, the fire is among the “Big Five” tech companies – Facebook, Alphabet Inc. (NASDAQ:Goog, NASDAQ:GoogL), Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Microsoft Corp. (NASDAQ:MSFT) – heats up.

First off, this federal judge was more receptive to further investigating Facebook’s takeovers of Instagram and WhatsApp.

Then there is President Joe Biden coming to Big Tech.

On July 9th, he signed a far-reaching executive order aimed at tackling suspected anti-competitive practices in the technology sector.

“Capitalism without competition is not capitalism,” said Biden when signing the far-reaching directive. “That is exploitation.”

Then, earlier this week, we learned that President Biden plans to appoint attorney Jonathan Kanter to head the Justice Department’s antitrust division (DOJ). Kanter has represented companies that want antitrust authorities to sue Google.

Congress and numerous US states are also following Big Tech. For example, earlier this month 36 states and DC filed a lawsuit against Google alleging that the Play Store for Android violated antitrust laws.

According to an analysis by tech news site The Information, Apple, Amazon, Google and Facebook are currently facing 70 competition-related lawsuits or investigations worldwide. That’s an increase from 17 two years ago.

You have a goal on your back.

I’m not mentioning the hostile relationship between DC and Big Tech for political reasons. Rather, I want you to understand the forces that shape the market.

All of this is key to what I’ll be discussing during my next big free event – scheduled for Tuesday, July 27th at 7 p.m. Eastern (Reserve your place here).

So let’s take a closer look …

The right way to choose a winner

The dominance of big tech and the resulting antitrust efforts against it are by-products of what we call “Technochasmus.”

When money goes into these companies, not only do their stocks go up, but they also become more dominant in the US economy, society, and culture.

In the table below you can see how the technochasm breaks apart.

Technology values, represented by the Technology Select Sector SPDR ETF (NYSEARCA:XLK), have more than doubled the return on the S&P 500 … and hit other sectors, including energy and utilities, downright.

Washington’s regulatory “hammer” is of course not aimed at every tech company, and it would be foolish to abandon the entire sector because some companies are being scrutinized.

Whether you believe regulators and politicians are honest about capitalism or you think they stifle innovation, there is no denying that they are capable of nuanced thinking.

I don’t mean that they are geniuses … or that I absolutely have to agree with them. Again, I’m not here to talk politics.

Rather, I think regulators can see the real differences between a company like Apple, which has a market cap of nearly $ 2.5 trillion and rules multiple tech subsectors, and one of my top stocks for leveraging the technochasm.

This company has a market capitalization of less than $ 500 million … but it’s growing rapidly in its tech niche. (You can find out more about this little tech innovator who’s going to be at my next big event on July 27th register here.)

Although both are technology companies, they are in different universes.

It’s important to remember that the companies that antitrust action is directed against are different from other technology companies.

As the Biden government picks up more antitrust proceedings or laws against Big Tech, it will likely focus solely on the Big 5 and a few others.

For tech stocks in general, hope is not lost.

And honestly, if you’re considering investing in a company and hoping for a big payday, the Big 5 stocks shouldn’t be high on your list anyway.

With these stocks, you’re just trying to pick the one that is least likely to be targeted by regulators, and that’s a guessing game I’d rather avoid.

Instead, I recommend looking at the companies that are flying under the radar … the companies that are innovating new technology rather than inconspicuously dominating the competition.

This small-cap favorite of mine, for example, could become a big beneficiary of the multi-year expansion of the one specific advancement I was looking at during my big event on Tuesday (register here to reserve your place for it).

And that makes it the perfect way to get on the right side of technochasm …

A crucial piece of technochasm

Put simply, the company’s test products can detect and localize faults in fiber optic networks with millimeter precision.

In other words, this company’s products test the performance of key Internet and communications components. After all, fiber optic networks enabled the original boom in Internet infrastructure.

That makes this company’s products fundamental to the technochasm.

Last year, this company unveiled its latest fiber optic test product and secured a major order from a major defense company almost immediately.

The product enables fast and accurate troubleshooting in fiber optic networks in the field. At the end of last year, the contractor ordered around 100 units to test the fiber optic communications networks of some of its products.

Following this order, other defense companies and several new customers in the data center area have acquired.

These latter assignments are particularly intriguing as they indicate the demand for the one specific advancement that Louis and I will be discussing Tuesday. Data centers buy these units to test network latency.

Thanks to this one specific advancement, this company’s performance testers are likely to have robust and long-lasting demand.

That growing demand should accelerate sales growth over the coming quarters … and years.

The company’s rapid growth – and the potential to accelerate that growth – should bring tremendous returns to investors for many years to come.

This is just one of the many small but promising stocks that I have recommended to help investors get on the right side of technochasm.

And if you want to learn more about the hidden opportunities that can get you ready to tackle this enduring phenomenon, join my next big event with a legendary investor Louis Navellier.

This event is scheduled for Tuesday, July 27th, 7 p.m. Eastern.

You can Reserve your place here.


Eric Fry

PS NOW OPEN: Register for the 2021 Tech Supercycle Summit

Louis Navellier and Eric Fry have just opened registration for their very first year, 2021 Tech Supercycle Summit. on Tuesday, July 27, 7 p.m. ET, they’ll reveal how you can earn at least $ 100,000 over the next 12 months as a new super cycle gets underway.

Reserve your place by clicking here.

NOTE: At the time of publication, Eric Fry had no direct or indirect positions in any of the securities discussed in this article.

Eric Fry is a award-winning stock picker with numerous “10-bagger” calls – in good AND bad markets. As? By finding strong global megatrends … before they take off. In fact, Eric has recommended 41 different stock market winners of over 1,000% in his career. He also beat 650 of the world’s most famous investors (including Bill Ackman and David Einhorn) in a competition. And today he unveils his next potential 1,000% winner free, right here.

The post Big Tech has a purpose in its back – so check out these stocks instead appeared first InvestorPlace.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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