No-Hiring Practices Could Harm Apple Inc. (AAPL), Facebook Inc (FB), Others

Hammered Investors

That’s where the shareholders get involved, of course. By allegedly colluding – apparently illegally – to control the tech hiring market, the tech giants may have committed crimes. And the biggest fish aren’t immune to being dragged before a judge. I already mentioned Sheryl Sandberg as having to testify. The judge ordered Apple Inc. (NASDAQ:AAPL) CEO Tim Cook to answer questions as well. Allegations like these, if batted about in the press, can reduce a company’s shares just by media pressure.

Sure, these businesses will survive it. They’re too big to be brought down by a case like this. But the time, effort, bad PR, and eventual payouts will all eventually reduce the valuation of each of these companies. That’s something no investor wants – especially if you’re already elbows-deep into any of these companies. So savvy investors had better pay close attention to news of the case. Keep a wary eye out for rejected settlement offers. Each one of those indicates that some company wants out to protect itself.

Heck, it’s always a good idea to hedge one’s technology investments. The very biggest players are getting to the point where they believe they’re untouchable. That sort of hubris always comes before real troubles. Stay invested in these guys — I still think these companies (except Facebook Inc (NASDAQ:FB)) are good plays — but be a little bit warier than you might have been earlier.

Nate Wooley has no position in any stocks mentioned. The Motley Fool recommends Apple, eBay, Facebook, Google, and Intuit. The Motley Fool owns shares of Apple, eBay, Facebook, Google, and Intuit.