What next for FAANG stocks after Facebook crash?

Facebook's share price crash has dragged down tech stocks and overshadowed a very positive earnings season for Amazon, Alphabet and Apple.

James Gard 3 August, 2018 | 5:00PM

 Facebook's (FB) share price crash has been the biggest story of this quarter's tech earnings season, overshadowing strong performances from  Amazon (AMZN),  Apple (AAPL) and Google parent company  Alphabet (GOOGL).

The biggest question is whether Facebook's problems will trigger an existential crisis for FAANG stocks in general, or lead to an unbridgeable divide between tech "winners" such as Amazon and the social media giants of Facebook and  Twitter (TWTR).

The bearish argument is that tech stocks have propelled global markets higher in recent years. With the trade dispute between the United States and China escalating, and central banks tightening monetary policy, this protracted bull run is due for a correction. The bull argument is that companies like Amazon are consistently outperforming and deserve their high valuations.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alphabet Inc A1,451.09 USD-2.42
Amazon.com Inc2,954.91 USD-1.79
Apple Inc106.84 USD-3.17
Facebook Inc A252.53 USD-0.90
Netflix Inc469.96 USD-0.05
The Walt Disney Co128.63 USD-1.22
Twitter Inc40.15 USD2.03

About Author

James Gard

James Gard  James Gard is subeditor for Morningstar.co.uk.

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