The so-called FAANG stocks — Facebook (FB – Free Report), Amazon (AMZN – Free Report), Apple (AAPL – Free Report), Netflix (NFLX – Free Report) and Alphabet (GOOGL – Free Report) — which were investors darling over the past decade, have seen terrible trading in the past six weeks. In fact, each of the five stocks has slipped into a bear territory from their peaks.
Facebook led the way among the group tumbling 40.6%, followed by declines of 39.1% for Netflix, 28.9% for Amazon, 24% for Apple and 22% for Alphabet. Collectively, these stocks have lost nearly $1.02 trillion in value since hitting their respective 52-week highs.
What Happened?
The decline came following the weaker-than-expected earnings results and a disappointing outlook. Facebook has been hit hard by its slowing user growth. The company reported 9% and 10% year-over-year growth in daily and monthly active users, respectively, in the third quarter. This represents a fall from 11% growth for both users seen in the second quarter. The stock is also declining on a raft of negative publicity surrounding its handling of foreign influence on the 2016 election.
Notably, Facebook hit its lowest level since February 2017 on Nov 19 and is on track to finish the third straight month in the red, which would mark the longest quarterly losing streak since 2013.
Amazon has been on a wild ride after issuing soft guidance for the holiday quarter, while Apple has declined on the Wall Street report that the iPhone maker has slashed production of its three new iPhone models — XR, XS and XS Max — introduced in September. Meanwhile, Netflix and Alphabet slid with the rest of the FAANG stocks. In fact, shares of GOOGL slid to the bear market territory for the first time in seven years.
The turbulence was also triggered by global growth worries resulting from ongoing trade tensions, geopolitical uncertainty, slowing economic growth in China and emerging markets.
