The infamous FANG group that includes Amazon.com, Facebook, Google-Parent Alphabet, and Netflix saw an unexpectedly volatile cleaving of $200 billion at the US stock market this Monday. The abysmal disruption in the values of all these companies at the stock market is projected to affect the stock market as a whole. Last October, all of these companies suffered devaluation in share prices by a range of 14 to 24 percent, and hence, the most popular form of trade in the US stock market seems to be in peril. The cumulative capitalisation of these companies has fallen to an all-time low of $1.93 trillion this Monday from a value of $2.5 trillion last July.
Adding to the Woos of FANG
The fall in share pricing of Amazon has been an abysmally unexpected shock for analysts who have come to believe that the company is bearing the brunt of increasing competition. The overall affect of Amazon’s slow-down in the stock market has affected FANG’s growth by leaps and bounds. Amazon underwent the worst two-day devaluation since 2014, and the company has now been replaced by Microsoft from the 2nd spot in the list of largest cloud computing seller and online retailer companies in the US.
What to Expect?
Favebook is due to release its quarterly results on Tuesday, and all eyes are on the company to see what turn does FANG’s growth take. Analysts have projected that the company would witness a 33% growth in revenues through this third quarter, the slowest to have been achieved by Facebook since 2012.