Have the FAANG Stocks Lost Their Bite?

FAANG used to be a convenient and memorable term to describe the biggest tech giants on Wall Street: Facebook, Amazon, Apple, Netflix, and Google. But Google has changed its name to Alphabet and Facebook to Meta. So, the acronym doesn’t work anymore. NAAMA? No. ANAMA? Maybe. MAANA? Like MAANA from heaven?

FAANG is not working well now in more important ways. After dominating the high-tech markets over the last 10 years, recent earnings on all five companies are looking shaky.

* Facebook lost about 500,000 daily users in Q4 2021, and suggested it could have its first year-over-year revenue drop next quarter.

* Apple recently warned it could lose $8 billion due to supply chain constraints this quarter.

* Amazon reported its first quarterly loss in seven years, resulting in the stock tumbling about 14%.

* Netflix announced it lost subscribers for the first time in over a decade, leading its stock to drop 35% the next day and wiping $50 billion from its valuation.

* Google showed slower growth than last year and missed revenue projections for Q1, thanks in part to a weak quarter for YouTube.

So far this year, all five stocks are down, with Apple being the only one outperforming the S&P 500 index.