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.
Some of the companies that have exploded over the past few years are warning of a slowdown in growth.
Facebook, Meta’s flagship, saw its users decline for the first time in the company’s 18-year history in the fourth quarter of last year.
Netflix predicted that the increase in users this quarter will be much less than a year ago.
In addition to companies’ earnings announcements, U.S. government bond rates have also hit technology stocks since the beginning of the year due to the Fed’s prospect of a rate hike.
In recent years, other stocks such as NVIDIA and Microsoft have also emerged. These two stocks posted 29% higher returns than Amazon and Netflix last year.
Some investors question whether it is reasonable to have Netflix in FAANG. Some call it “FAAMG” with Microsoft instead of Netflix.
There are also signs that individual investors are buying other technology stocks.
Recently, net inflow of individual investor funds into three countries, Tesla, AMD, and NVIDIA, was the highest since September 2020.
Bandari Search pointed out that investors prefer these three stocks to Facebook, Amazon, Microsoft, and Alphabet.