Facebook Left in Dust as Tech Stocks Lead Recovery From RoutBy
There’s one notable name missing from the technology-led recovery in U.S. stocks: Facebook Inc.
The social-media giant has gained less than 3 percent since Feb. 8, the day equity markets saw the trough of their worst selloff in two years. That puts it far behind other large-cap peers such as Amazon.com Inc., Microsoft Corp. and Alphabet Inc., which have all risen at least 9 percent in the same period. Apple Inc. has advanced 11 percent.
Tech stocks are leading the recovery after a rout that sent the S&P 500 Index to its first 10 percent correction in two years. The 68-member S&P 500 Information Technology index is close to recouping losses from the plunge and is up 8.8 percent since Feb. 8. Financials are the next best performing sector with a gain of 6.5 percent over that period.
The company led by Mark Zuckerberg is grappling with declining user engagement, while fourth-quarter earnings revealed that growth in daily active users was the slowest ever. While Wall Street analysts defended the company after its results, the muted share-price trend compared with peers in the past two weeks indicates that some investors might not be convinced.
— With assistance by Sarah Frier