FAANG stocks suffered a massive dip before the holidays, wiping out $1 trillion in combined value. Now they’re bouncing back — with one notable Apple-shaped exception.
While Facebook, Google, Netflix and Amazon have all gained between 10.7 percent and a massive 50 percent since Christmas Eve, Apple is severely lagging. It’s up just 5.5 percent over the same period.
For the first time in six years, Citigroup has “buy” ratings on all four FANG (note the missing “A” for Apple) stocks. The group Canaccord Genuity is also enthused about their prospective performance.
The winner, at least in terms of stock gains, is also the smallest. Netflix has a current market cap of just over $153 billion, compared with $424 billion, Apple’s $732.8 billion, Google parent company Alphabet’s $754 billion, and Amazon’s $823 billion.
However, Netflix’s stock has risen 50 percent December 24. Other top-performing FANG stocks include Amazon, which has increased 25 percent, and Facebook, which is up 19 percent.
Can Apple turn things around?
While all of the tech stocks have had challenges, Apple might find it the hardest to turn things around. That’s because much of its recent decline is based on shrinking iPhone sales — particularly in markets like China. Until Apple is able to convince investors that this is no longer a problem, Apple stock may fall behind the rest of the pack.
As of now, AAPL is trading at $154.94. Although it’s up slightly this year, it’s also down considerably from its high of $232.07 back in October. That followed Apple’s astonishing feat becoming the first public company in history to be valued at $1 trillion.
Source: Bloomberg
