Four of the five FAANG stocks tried to rebound Tuesday in the wake of a harsh sell-off over concerns about a weakening outlook for the technology giants, but only two of the companies clung to gains.
The FAANG stocks — Facebook (FB), Amazon.com (AMZN), Apple (AAPL), Netflix (NFLX) and Google-owner Alphabet (GOOGL) — long have been industry darlings, representing the biggest stocks in tech and the internet.
Facebook stock, which plunged 5.7% Monday, was up 2% during morning trading on the stock market today. Facebook stock added 0.7% to close at 132.43. It’s down 40% since hitting a record high of 218.62 on July 25.
Facebook was hammered by recent investigative stories from the Wall Street Journal and the New York Times. The articles revealed company infighting and mistakes. The stories raised serious questions over their handing of data privacy and security matters.
Alphabet stock managed a meager gain, closing at 1,030.45. up 0.3%, after falling 3.8% Monday.
The company reported third-quarter results on Oct. 25 that missed revenue estimates. Rising competition with Amazon is a concern.
Other Stocks Close Lower
But other stocks failed to stay in positive ground. Amazon stock was up 1.5% during morning trading, vs. a 5.1% drop on Monday. The stock closed down 1.1% to 1,495.46. It’s down 26% from its high of 2,050.50 on Sept. 4. That’s the day Amazon’s market cap briefly moved above $1 trillion.
Amazon reported third-quarter results on Oct. 25 that fell short on revenue and gave a weak fourth-quarter revenue forecast.
Goldman Sachs analyst Rod Hall on Tuesday reiterated his neutral rating on shares and slashed his price target on Apple to 182 from 209.
Netflix stock was up 2% during morning trading, after falling 5.5% the prior day to close at 270.60. It closed at 266.98, down 1.3%, falling 36% from a high of 423.20 set on June 21. Competitive concerns have pounded Netflix stock recently.
Meanwhile, Apple stock started the day in the hole and stayed down. It fell 4.8% Tuesday to 176.98. That’s after dropping 4% Monday and falling 24% off its high of 233.47 set on Oct. 3. Apple’s getting hit by a number of negative reports about iPhone demand and production cuts.
