According to analysts' research, investors are gradually reconsidering their approach to trading shares of large American technology companies after a volatile week accompanied by sharp price fluctuations. Now market participants are beginning to analyze the leaders of growth and decline more carefully, trying to identify companies with potential for growth next year. Shares of Meta Platforms Inc., Apple Inc., Amazon.com Inc., Netflix Inc. and Alphabet Inc., members of the so-called FAANG Group, have demonstrated significant and similar growth over the past three years. However, since the beginning of 2022, the securities of all five companies have been getting cheaper. Moreover, the FANG+ indicator, which tracks these and a number of other stocks, has collapsed by 10% since the beginning of the year. And some stocks, including Netflix and Meta, have fallen at least 38% from record peaks. The S&P 500 index dropped 6.2% from its record high. Meta's quarterly results, which disappointed market participants, led to a decrease in the company's market value by more than $230 billion. Streaming service Netflix reported that subscriber growth in the current quarter will be weaker than expected. As a result, the company's securities collapsed by 22%, which was their maximum fall in one session since 2012. Experts note that the reason for the high volatility of tech giant stocks is not only the reporting season. The sector has been under pressure since the beginning of the year amid expectations of a rate hike by the US Federal System. These expectations led to an increase in the yield of US Treasuries to the highest since 2019 and a sell-off of shares in the technology sector.
TAUTAN CEPAT