Tech stocks have bounced back slightly after their dismal showing over the past month-and-a-half. Four out of the five FAANG stocks — Facebook, Apple, Amazon, Netflix, and Facebook — rose more than 1 percent in early trading today.
That’s not to say that the worst is behind them just yet, but it does suggest a turnaround could be on the cards. And not a moment too soon!
Netflix was the only FAANG stock to fall in today’s market, declining less than 1 percent. Apple, at time of writing, is valued at $173.50. While that is still down considerably from the $229.28 it traded for in early October, it is nonetheless a positive start to the week.
“Talk about classic bear market behavior,” CNBC‘s Mad Money host Jim Cramer noted today. “We crater all week and then we open up huge on nothing, but because we are so oversold it is hard to let things go.”
Struggling tech companies
Overall, FAANG stocks have declined more than 20 percent from their October high. This means that upwards of $1 trillion has been wiped off their combined market cap. Of all of these, Apple lost the most money — with more taken off its market cap ($231.06 billion) than the accumulated value Apple racked up in its first 30 years as a publicly traded company.
Whether this week will turn out to be the start of a recovery for the tech stocks remains to be seen. In the meantime, we could see some interesting readjustments or shake-ups — such as the potential threat of long-time Apple frenemy Microsoft overtaking it in terms of market cap.
Do you think this crash in prices is just a short-term blip, or part of a much bigger story? Let us know your thoughts in the comments below.