Anybody who knows anything about the U.S. Stock Market is already familiar with FAANG. An acronym for the five biggest, most popular and impressive tech stocks with significant performance, FAANG stocks have been trailblazers for more than a few years now.They’ve been so certain that people have largely formed a habit of buying into any of the five companies – Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google’s (GOOGL) parent company, Alphabet – as a completely sure way of turning significant profits from the stock market. In recent times, a few analysts have argued that the FAANG stocks are losing their former glory. But how have they really fared this year?Market and political factors are bound to affect the stock market unavoidably. A good enough example is the
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Anybody who knows anything about the U.S. Stock Market is already familiar with FAANG. An acronym for the five biggest, most popular and impressive tech stocks with significant performance, FAANG stocks have been trailblazers for more than a few years now.
They’ve been so certain that people have largely formed a habit of buying into any of the five companies – Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google’s (GOOGL) parent company, Alphabet – as a completely sure way of turning significant profits from the stock market. In recent times, a few analysts have argued that the FAANG stocks are losing their former glory. But how have they really fared this year?
Market and political factors are bound to affect the stock market unavoidably. A good enough example is the ongoing trade war between the U.S. and China which doesn’t seem any closer to resolution at all. Sometime last month, U.S. President Donald Trump gave a speech at the UN where he seemed to tackle social media platforms, accusing them of manipulation.
According to a CNBC video of the speech, Trump said these platforms were “acquiring immense power over what we can see and over what we are allowed to say.” In response to this speech, Facebook stock lost 3%, Apple fell by 0.5%, Amazon lost 2.5%, with Google losing 1.3%. Netflix’s loss was the heaviest, as it dropped 4.3%. In total, FAANG stocks lost $58 billion, “courtesy” of Donald Trump.
Is Everything So Bad?
Away from the loss, it might be interesting to consider how each of them has performed this year.
Last year, FB began with a $543 billion market cap but went on to lose $164 billion, ending the year at about $399 billion. AAPL also lost $132 billion, beginning the year at $879 billion and ending with $747 billion. Even though it also lost, GOOGL fell the least, with a $45 billion loss from $771 billion to about $726 billion. However, AMZN and NFLX recorded gains as they both added about $137 and $25 respectively. Judging by last year, FAANG lost a combined $179 billion.
Even though there’s still considerable room for improvement, FAANG stocks have not recorded any year-to-date (YTD) losses for 2019. Currently, FB is at $515 billion, a $127 billion increase from its $387 billion market cap back in January, representing more than 33% YTD. AAPL began the year at $738 billion and has now surged more than $290 billion to its current $1.037 trillion, increasing more than 40% as well.
For AMZN, the stock increased $104 billion from $755 billion to $860 billion, a 13% YTD increase. NFLX was the smallest jumper as it’s currently at $119 billion, from about $117 where it began the year, increasing only about $3 billion, less than 3%. Lastly, GOOGL moved $105 billion from $733 billion to $838 billion, pulling in a 15% increase.
One might probably argue that the biggest stocks in the market, tech or otherwise, should be able to pull in bigger and better numbers. However, save for NFLX at 3%, there have been considerable gains and absolutely no losses so far.
With the trade war still tightening and President Trump facing the possibility of impeachment, there probably is an equal chance the stocks could perform much better or much worse before the year runs out. A lot of it is predicated on market factors and the political clime, and only time can definitively tell.