How Do FAANG Stocks Look after Market Rout?
Tech stocks took it on the chin on Thursday. Here’s our take on whether tech’s leaders are worth nibbling on.
After a huge stretch of outperformance, technology stocks slid on Thursday, driving down the increasingly concentrated, tech-heavy S&P 500 by 3.5%. Widely held FAANG stocks were knocked around, with Facebook (FB) off 3.8%, Apple (AAPL) skidding more than 8%, Amazon.com (AMZN) sliding 4.6%, Netflix (NFLX) down 4.9%, and Alphabet (GOOG) (also known as Google, to round out the acronym) shedding more than 5%.
Prior to yesterday, tech stocks had been on a tear: The Morningstar US Technology Index was up more than 40% for the year to date, with most FAANG stocks returning more than that--led by Apple’s extraordinary 80% year-to-date gain.
Susan Dziubinski does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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