FAANG Stocks Impact Broader Markets, Investors’ Sentiments

  • November 30, 2018 03:52 AM AEDT
  • Team Kalkine
FAANG Stocks Impact Broader Markets, Investors’ Sentiments

The technology sector in the United States happens to be a sector which decides the broader movement of the equity markets as a decline in these stocks severely impacts the movements in the market as well as the sentiments of the investors. It would not be wrong to say that the big technology giants in the United States like Facebook (NASDAQ: FB), Apple Inc (NASDAQ: AAPL), Amazon Inc (NASDAQ: AMZN), Netflix (NASDAQ: NFLX) and Alphabet Inc (NASDAQ: GOOGL) are the stocks which carry the potential of impacting the markets. Moreover, these stocks are also regarded as the growth stocks by the market players. The stocks in which there is a high probability of the capital appreciation are placed in the list of the growth stocks.

On November 29, 2018, Facebook ended the session at US$138.68 per share while Amazon settled at US$1,673.57 per share. However, Netflix, Google, and Apple ended yesterday’s session at US$288.75 per share, US$1,094.58 per share and US$179.55 per share, respectively.

Needless to say, mainly the stocks which are operating in the technology sector are the stocks which are defined as the growth stocks by the investors. The investors in growth stocks are more interested in the long-term capital appreciation as they make deployments in these stocks on a long-term basis. The deployments in the growth stocks need to be done in those companies which are having strong fundamentals. Therefore, it would not be wrong to say that the investors need to adopt “buy and hold” strategy when they are planning to make investments in the growth stocks. The strong fundamentals of these stocks help them in tackling minor hurdles, and the investors also build up their confidence in these stocks. Another factor which attracts investors towards growth stocks is the company’s strategy re-investment. This re-investment strategy further boosts the confidence of the investors in these companies.

The performance of the FAANG stocks is sensitive to the global macroeconomic variables which could impact the economy as a whole. Therefore, the trade battle between the US and China needs to settle as any escalation could impact the broader technology sector which negatively impact the equity markets. The meeting between the US and China is a key event which the market players might be closely tracking especially the investors in the technology sector. If the outcome of the meeting between these two countries is not positive, the Trump administration might go for slapping more tariffs which might also include some of the products of Apple. It would not be wrong to say that the impacts on the technology stocks would also be felt upon the markets. If the technology companies give an outlook which is not up to the mark as expected by the market players, a strong downtrend in the broader sector would also pull down the performance of the equity markets.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Â

 

With the pandemic continuing to affect the globe, healthcare companies are evaluating their lead compounds for COVID-19 treatment. Future revenue for these stocks depends on the probability of launching an approved treatment in the market.

CLICK HERE FOR YOUR FREE REPORT!

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK