The FANG Stocks Are Selling Off Again Ahead of EarningsBy
For the sixth time in seven days the so-called FANG group was taking on water in the stock market, spreading angst a day before several tech megacaps unleash quarterly results into an already uneasy market.
A Bank of America index tracking the shares of Facebook, Amazon, Netflix and Google fell as much as 1.3 percent Wednesday, resuming a decline that’s sent the group’s retreat since its October high to almost 4 percent. Major indexes followed, with the S&P 500 down the most since early September.
While the loss isn’t huge, the timing is worrying, with Amazon and Google’s parent Alphabet scheduled to announce results Thursday. One explanation for the recent weakness is anxiety over earnings after a 40 percent surge in the shares pushed the group’s valuation to about six times the S&P 500. Analysts are cutting estimates for the biggest tech firms while revising forecasts up for the rest of the market, data compiled by Bloomberg show.
It may be up to Google and Amazon to prove the bears wrong.