Amazon, Apple, Alphabet, Facebook, and Netflix, have together lost over $1 trillion in market capitalisation in the continued slide.
The “FAANG” as they are called, since october 3rd have lost;
- Facebook: $253 billion
- Amazon: $280 billion
- Apple: $253 billion
- Netflix: $67 billion
- Alphabet: $164 billion
The continued downward spiral has resulted in Dow Jones and S&P 500 also going down to negative this year.
What is causing the losses for “FAANG”?
A variety of reasons combined with the overall economic scenario in has plunged the stocks, we look at them individually.
Facebook and its controversies
Facebook has lost over 40% of their share value since the high this year.
This follows a multitude of controversies from Cambridge Analytica, to data hacks, to their handling of controversies and attempts to malign their critics.
A mix of negative publicity and bad handling of exposure of US elections meddling by Russians is what started the slide.
This coincides with renewed calls for the heads of Mark Zuckerberg and/or Sheryll Sandberg, the #1 and #2 in Facebook. However, there seems to be no sign of any change or remediation of the situation.
Apple and its slowing business
Apple’s problems started once they announce they will not be revealing the iPhone sales next year. This was followed by forecast cuts by 3 suppliers of iPhone part for the next year.
Apple which has lost a quarter of a trillion dollars further suffered a setback when Goldman Sachs cut their share price targets last week citing “a weakness in demand from China and emerging markets”. The bad reception of iPhone XR didn’t help the matter for them.
Amazon and its lower forecast
Amazon’s problems began after they released their forecast for the fourth quarter in October, which was much lower than expected.
Netflix & Google caught in the mix
To be fair both Netflix and Google haven’t done a lot wrong, however, they have been caught in the mix of their own controversies though have largely remained unaffected by it.