The Democratic Party sweep in the 2026 midterm elections could be bad news for some sectors, such as technology, heading into 2027. Freedom Capital Markets Chief Market Strategist Jay Woods said investors may be overlooking a major technology stock that could benefit from the Democratic Party’s sweep.
Jay Woods’ 2027 Stock Pick
Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) was one of Woods favorite Magnificent Seven stocks in 2026. It’s not just a top Magnificent Seven stock pick from the market expert for 2027, but his overall top stock to watch.
“Alphabet is the stock to watch in 2027 with the Democrats in power,” Woods told Benzinga in a recent interview. “With the Democrats in power, they may look to break up some of these companies because those Mag Seven names, they’re monopolies.”
Woods said the first one that could get broken up is Alphabet.
“God bless them if they do. Talk about unlocking shareholder value.”
Woods, who owns Alphabet shares, says the sum-of-the-parts for the company is likely greater than the current valuation and a Democratic targeted breakup could unlock value.
The market expert highlights some recent stock spinoffs like SanDisk (NASDAQ:SNDK) from Western Digital (NASDAQ:WDC) and General Electric becoming GE Aerospace (NYSE:GE) and GE Vernova (NYSE:GEV).
“We’ve seen value in breakups and spinouts and carveouts. I would welcome people looking to break up some parts of these Magnificent Seven names because I think the shareholder value it could unlock.”
Woods said Democrats in power could quickly become a breakup theme for big technology.
Alphabet in Pieces
Woods highlights the pieces of Alphabet that could create value.
“YouTube alone, that could be a trillion-dollar company on its own. Waymo seems like they’re still hitting on all cylinders compared to Tesla when it comes to self-driving and automation.”
Woods said Google Search and Google Chrome could be their own units or together and the same with Gemini.
“There’s so much they could do.”
Photo Courtesy: Jay Woods
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