How soon will FAANG stocks see a bull run?

May 19, 2022 10:22 AM PDT | By Team Kalkine Media

How soon will FAANG stocks see a bull run? — Image source: © Iconicbestiary | Megapixl.com

Are FAANG stocks going to rebound?

The hullabaloo around FAANG stocks is justified. Their combined market valuation is US$7 trillion, and together they represent a fifth of the S&P 500.

So, investors would never squander any chances of buying them when available at a discounted price.

However, this year has witnessed a classic tech rout, with global tech majors crumbling like anything. Looming fears of recession, four-decade high inflation, interest rate hikes, and the Russia-Ukraine war have weighed down heavy on tech stocks, including the FAANGs.

Trimming workforces could indicate that these companies may be feeling the pinch. Netflix will lay off 150 employees in the next few days, citing dwindling revenue and growth issues.

Most importantly, the market sways when there is a tremor in any of these companies. Netflix, for instance, floundered by losing around 200 million subscribers this year. It posted poor revenue and very slow growth. Its reported revenue of US$7.87 billion in Q1 2022 is below Wall average Street estimates.

The FAANGs are quite diverse in their business and have different parameters governing them.

FAANG stocks’ character is sustainability

Although the FAANG companies have taken the beating in the current market situation, troubled by the several ongoing macroeconomic roadblocks, organic business growth also matters a lot. FAANGs can still deliver that and stay atop these parameters.

Investors who think in the longer term have not written them off, and they still see an opportunity in FAANG stocks. These stocks might always be dearer to longer-term focused investors.

Bottom line:

Although the general sentiment is of a revival of the FAANG stocks soon, this year has been quite unlike what we have seen in many years. So, it is difficult to predict amid a global economic tumult for various reasons.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or 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, as necessary.