So far this year, shares of companies such as Facebook, Apple, Amazon, Netflix, and Google -- collectively known as FAANG -- have gained on an average 50% while the NASDAQ index is up 40% since January.
In the previous week Nasdaq index gained 2.34%, outperforming the Dow Jones and the S&P 500. The big tech names were again aiding this up move as investors flocked on the FAANG stocks, most of which ended in the green. So far this year, shares of companies such as Facebook, Apple, Amazon, Netflix, and Google — collectively known as FAANG — have gained on an average 50% while the NASDAQ index is up 40% since January.
Facebook stock surged 1.1% during the previous week. Although the stock is down so far this month, the gains recorded in the previous week come as a surprise as Mark Zuckerberg’s company continues to face headwinds in the form of antitrust lawsuits filed against the company by the Federal Trade Commission and the states. Analysts believe that the stock may not be adversely affected by the litigation. US-based Financial news magazine, Barron’s Quoted UBS analyst Eric Sheridan saying that the lawsuit is unlikely to breakup the company despite being a headwind.
Apple’s share price gained 3.3% during the previous week. With this the iPhone maker has zoomed 69% so far this year. Apple’s stock is likely to be favoured by investors in the coming year as technology takes a leap into the 5G era. The expectation of increased sales are also aided by a Nikkei report that said that Apple would be increasing production by a massive 30% next year.
Jeff Bezos’ Amazon has jumped 69% so far this year with the pandemic playing into the hands of the retail-to-technology giant. In the week gone by, Amazon jumped another 1.8%. Amazon’s shares could be in for more of the same in the coming year as it benefits from both, the growth and dependence on technology and increased online shopping.
Netflix, one of the biggest stay-at-home bets of this year, zoomed another 5% during the previous week. Overall, this year the stock has gained 62% and this might continue to be the same for a few months at least. Although the news of a vaccine did initially cause the stock to fall but investors are aware that the road back to the old normal might still be a bit far.
The only FAANG stock to register losses in the previous week was Alphabet or as it is widely known Google. Shares of the internet giant fell 2.5% in the previous week, this translates to a fall of over 5% so far in December. Similar to the stock performance, Google’s key products like Gmail and its search engine were also down for a brief period in the previous week. The weakness in Google’s stock aids from the third antitrust lawsuit that has been filed against the company. This is in a span of two months and if reports are to be believed this time the company faces a coalition of bipartisan attorneys general.