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All The FANG Stocks Are Now In A Bear Market And Facebook Investors Have Already Lost 39 Percent Of Their Paper Wealth – Michael Snyder
These large stock market declines are starting to become a regular thing, and tech stocks are getting hit particularly hard. But we have been in a bull market for such a long time that many investors are having a difficult time comprehending what is happening. Many just keep believing that their beloved tech stocks will eventually bounce back because they just can’t accept the fact that the party is over. At this point, all of the “FANG stocks” have officially entered bear market territory. Facebook is down 39.5 percent from their 52 week high, Amazon is down 25.4 percent, Netflix is down 35.6 percent and Google is down 20.3 percent. And since many throw in Apple to make the acronym “FAANG”, we should also note that Apple’s stock price is now down more than 20 percent from the peak. The tech stock crash that so many have been waiting for has arrived, and many analysts believe that it is going to get a whole lot worse.
The combined market value of Facebook, Amazon, Netflix and Google has fallen by 610 billion dollars so far.
Just think about that for a moment.
Most Americans don’t even realize that tech stocks have been crashing, and many of them simply assume that their investments are safe.
And at one time Facebook was considered to be a very safe investment, but now 39.5 percent of the value of Facebook has already been completely wiped out.
It looks like November will be Facebook’s third month in a row in the red, and that will be the longest monthly losing streak that it has ever had.
A lot of people are shocked that this is happening so rapidly. But really the only surprise is that it has taken this long for these massively overvalued stocks to crash and burn.
The truth is that these companies have been priced beyond perfection. So when even the smallest piece of bad news comes along, investors can start to panic.
For example, one of the big reasons why Apple has declined so much is because production orders for all three of the new iPhones that were unveiled in September have been slashed. It looks like iPhone sales are not going to be at quite the level everyone had anticipated, and Wall Street responded by throwing a huge temper tantrum.