For those who aren’t aware, FAANG is an acronym used for Facebook, Apple, Amazon, Netflix and Google, the five tech giants who have been the favourite investments for the past decade or so. However, the mighty FAANG stocks have collectively lost over $1 trillion in value from recent highs as shares dropped after Tuesday’s open (via Fortune).
Alphabet’s stock closed Monday at $1,020 a share, marking a 20% decline from its record high of $1,273.84 a share in late July. Apple’s stock is down 20.3% from its Oct. 3 high, while Amazon has lost 26.3% of its value since early September. Netflix has slid 36.1% since reaching a peak in late June, while Facebook’s stock has dropped 38.8% since late July.
It is believed that disappointing forecasts from Apple, Amazon, and Facebook spurred a stock selloff that is continuing this week as well. Apple alone saw a 4% decline following the Wall Street Journal’s report that the company had cut orders to suppliers for all three iPhone models introduced this year. Facebook, meanwhile, fell 5.7% amid rising concerns it could face more regulatory scrutiny.
Combined market capitalization losses since their 52-week highs have hit $1.02 trillion today:
- Facebook: $253 billion
- Amazon: $280 billion
- Apple: $253 billion
- Netflix: $67 billion
- Alphabet: $164 billion
Wall Street defines a bear market as a fall of 20% or more from a stock’s 52-week high. It appears that the five tech giants are all sustaining declines of 20% or more, enough to push them into bear-market territory.