Each of the five “FAANG” stocks closed in a bear market on Monday.
The FAANG stocks — Facebook, Amazon, Apple, Netflix and Google-parent Alphabet — have fallen steadily over the last 6 weeks as the companies delivered disappointing earnings and mixed forecasts.
Facebook in particular has been hard hit during this round of selling, falling to a new low for the year after a raft of negative publicity surrounding its handling of foreign influence on the 2016 election. Collectively, the five stocks have lost nearly $1 trillion in value since hitting their respective 52-week highs.
Amazon’s stock has continued to fall since it gave a fourth-quarter outlook on Oct. 25 which fell short of expectations. Apple shares dropped after the WSJ reported the company slashed orders for the iPhone XR, XS and XS Max models. Netflix and Alphabet shares, meanwhile, have continued to fall with the rest of the FAANG stocks.
Tech stocks are coming off an October that saw the Nasdaq Composite plunge 9.2 percent, its steepest drop in a month since November 2008.
Wall Street defines a bear market as a fall of 20 percent or more from a stock’s 52-week high.