FAANG Stocks, an acronym for the five major technology leader stocks listed on the US Stock exchange, are the darlings of investors worldwide. It consists of Facebook (now Meta) (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Google (now Alphabet) (GOOGL).
The year 2022 has not been favorable for the investors so far. Dow Jones Industrial Average (DJIA) has crashed -3,587.09 points i.e -9.80% in 2022 YTD, whereas, NASDAQ has declined -3,515.11 points i.e. -22.20% in the same time period. Amid the global market crash, even FAANG Stocks are not left untouched and are beaten severely.
Out of all 5 FAANG Stocks, Netflix has been hit most fiercely and the stock is down by over -68.48% in 2022 YTD. Netflix faces intense competition from streaming OTT rivals but was also hit after raising prices and leaving Russia. The Netflix stock was trading at $597.37 at the start of the year but is currently hovering at $188.32.
After Netflix, Facebook (Meta) has suffered massively in 2022 YTD where the stocks of FB have crashed by over -38.38%. The stock was trading above $563.67 at the start of the year, however, has crashed to the current share price of $208.28. It has resulted in the Meta founder, Mark Zuckerberg being thrown out of the top 10 richest people in the world list.
The shares of the other three FAANG companies have also plunged in 2022. Amazon stocks have declined by -31.69%, Google declined by -19.65% and Apple has crashed by -13.87% YTD.
As of 6th May 2022, the combined market cap of FAANG stocks is USD 5.9 Trillion, which is greater than the market cap of all the 50 companies in Nifty 50 put together, which reflects the importance prospective for the FAANG stocks.
