The Wall Street Journal (WSJ) reported on the 6th (local time) that Big Tech (large information technology company) “FAANG” stocks, which have been attracting attention in the U.S. stock market for years, are losing light.
FAANG is derived from the initials of five big tech companies, including Facebook (Meta), Apple, Amazon, Netflix, and Google (Alphabet).
The New York Stock Exchange’s “FANG+” index fell 10% this year, larger than the Standard & Poor’s 500 index fell 6.2% during the same period. The index consists of 10 technology stocks, including 5 FAANG companies.
FAANG stocks have soared over the past three years, but all of them have fallen this year. In particular, Netflix and Meta fell more than 38% compared to their high points. On the other hand, Apple, Amazon, and Alphabet exceeded market returns.
Amy Kong, Chief Investment Officer (CIO) of Barrett Asset Management, pointed out that FAANG stocks have been very strong as a whole over the past decade, adding, “At this point, some cracks have begun to appear.”
The biggest rupture was that the company’s market capitalization flew nearly 300 billion dollars on the 3rd due to Meta’s disappointing announcement of earnings.
Amazon, on the other hand, saw its stock price soar 13.5% and its market capitalization rise $191 billion on the 4th after its quarterly net profit nearly doubled, in stark contrast to Meta.
Barrett Asset Management’s Kong said he holds shares in Meta and other technology giants, but is looking for an opportunity to dispose of Meta’s stake. He is still optimistic about other big tech companies.
