Well, it seems Plutus is not feeling too well about Tech Stock. Experts and financial pundits are scratching their heads after a consecutive second day dive by the highly vaunted FANG — Facebook, Amazon, Netflix and Google – stocks. If the trend continues, it could bode ill for the tech market.
The FANG stocks are some of the most valuable and high-risk,high-reward stock currently in the tech market. Which is one reason why they are commonly used to judge market sentiment and decide if the times are good or bad Another stock which though not included in the group (because it might mess up the spelling) is Apple.
Well, all of these companies have been on a sharp decline, causing raised eyebrows in the market. Between Friday and Monday, Facebook fell by almost 4.5% and came to rest at $148 — from an original price of $155. Amazon on the other hand, fell by around 4.75%, loosing the $1000+ crown and coming to rest at $965.
Netflix took the worst hit among the FANG companies and fell by 8%+ to arrive at $151 from an initial price in excess of $165. Google parent Alphabet on the other hand, managed to ride the tide somewhat better then its peers and fell by 4 percent to come to rest at $942.
Apple, widely considered a stable stock was also affected and dropped by 6%, falling from $154.82 to $145.42.
Apparently, this correction occurred after a Goldman Sachs report that claimed that the market was over relying on these tech stocks and that the FANG stocks together with Apple, could be seeing a valuation bubble. And of course, we know how the market goes absolutely nuts at the mere mention of the word “bubble” after 2000. Thankfully though, the market seems to be holding up pretty well and a widespread panic did not take place.
Indeed, apart from the major and continuing effect on the Fang (+Apple) stock, the rest of the market does not seem to be particularly affected by the events. Meanwhile, considering the past performance of all of these stocks, it is very likely that this sudden decrease in stock value is the result of a minor panic between investors. However, that will not long last and we can expect things to go back to normal in a couple of days.
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