Facebook, Amazon, Apple, Netflix and Google have collectively lost $ 1 trillion porin value from their recent highs. CNBC reports:
The five “FAANG” stocks collectively lost more than $1 trillion in market value from recent highs as shares dropped after Tuesday’s open.
The stocks — Facebook, Amazon, Apple, Netflix and Google-parent Alphabet — all began Tuesday trading lower. Apple led the group’s losses, falling as much as 4 percent. The four other stocks later turned around, each going slightly positive on the day.
Combined market capitalization losses since their 52-week highs hit $1.02 trillion on Tuesday:
- Facebook: $253 billion
- Amazon: $280 billion
- Apple: $253 billion
- Netflix: $67 billion
- Alphabet: $164 billion
$1 trillion is quite a bit of value. Is it time to panic?
My answer: absolutely not. The time to panic was when just five stocks became responsible for so much of the stock market’s growth and that was a couple of years back. Dow-Jones, Standard & Poors, and other indexing companies might want to start thinking about their indexing strategies and whether they actually mean anything any more.
As it is the FAANG stocks have just lost about 10 months worth of price increases.
“Dow-Jones, Standard & Poors, and other indexing companies might want to start thinking about their indexing strategies and whether they actually mean anything any more.â€
Truer words have never been spoken.
I’m waiting and watching, Yes the FAANGS have been hit hard, but I’m long on VZ, and am down only about 1.5%, and that’s true of a lot of stocks.
That’s really Dave’s point, Gray. The losses are (wildly) disproportionately reflected in just a handful of stocks. There is some statistical science in constructing useful indexes. It’s broken right now. A practical aspect is that buying the supposed market through index funds, like so many do, is a sham. You are really buying exposure to that handful of stocks.