‘FANG’ Tech Stocks Lose $200 Billion in Market Cap on Monday

Zuckerberg tells lawmakers 'I'm sorry' for data abuses

Facebook, Amazon, Netflix, and Google parent company Alphabet, known collectively as the “FANG” stocks, lost a combined $200 billion in market capitalization on Monday.

Facebook, Amazon, Netflix and Google parent Alphabet lost a combined $200 billion in market capitalization by the end of a volatile Monday on the U.S. stock market. Each company’s share price has dropped between 14 and 24 percent in the month of October alone.

The group of companies, which is often referred to as “FANG” or “FAANG” (when Apple is included) had been forecasted to drop since earlier this year.

Jefferies Equity Strategist Steven DeSanctis told his clients in July that the market was placing more importance on a company’s valuation.  “Of the five FAANG stocks that have reported, two have flopped along with a few other high growth/high momentum names and this group is coming under pressure,” DeSanctis said. “We think this presents us with the catalyst to shift toward value and valuations mattering.”

Some analysts suggest that the drop is at least partially in response to the increased scrutiny directed at overreaching social media companies. Breitbart News extensively covered Facebook’s invasion of user privacy. In March, the company was forced to take out a full-page ad in major newspapers around the world to apologize for its invasions on user privacy.

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