In two sessions, $200 billion of FANG market cap up in smoke
Reuters
Published Oct 29, 2018 09:02PM ET
In two sessions, $200 billion of FANG market cap up in smoke
By Noel Randewich
SAN FRANCISCO (Reuters) - Facebook (NASDAQ:FB), Amazon.com (NASDAQ:AMZN), Netflix (NASDAQ:NFLX) and Google-parent Alphabet (NASDAQ:GOOGL) were at the center of a volatile session on the U.S. stock market on Monday, cleaving $200 billion off of the so-called FANG group's combined market capitalization in two sessions.
With each company's share price down between 14 percent and 24 percent in October, the quartet of stocks that has been the most popular trade on Wall Street in recent years appears to be in trouble.
Falling apart - https://tmsnrt.rs/2CPl2MP
The combined companies' market capitalization has fallen from a record $2.5 trillion in July to $1.93 trillion on Monday.
FANG falls on hard times - https://tmsnrt.rs/2P1lsab
The most recent catalyst hurting FANG was Amazon's quarterly results late on Thursday, which missed analysts' expectations and ignited worries the tech darling is finally facing stronger competition.
Amazon's stock has fallen 14 percent since then, its worst two-day decline since 2014, with the online retailer and cloud computing seller relinquishing its spot as the second largest U.S. company by stock market valuation to Microsoft (NASDAQ:MSFT).
Two-session take-down - https://tmsnrt.rs/2OZaSjS
That steep two-day drop in Amazon and losses in other FANG stocks has reduced the group's market capitalization by $200 billion to $1.93 trillion.
The next catalyst for FANG may come on Tuesday, when Facebook posts its quarterly results after the bell. Analysts on average expect the social network's revenue to have grown 33 percent in the third quarter, its slowest quarterly growth rate since the company listed its shares in 2012, according to Refinitiv.
Facebook's revenue growth rate slowing - https://tmsnrt.rs/2CNINoG
Investors in recent months have become increasingly concerned about rising costs and damage to Facebook's reputation following criticism of its management of users' personal data.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.