Don’t let two bad seeds ruin your obsession for some FAANG stock components.
Facebook (FB) just had its version of Black Monday. The social media giant posted lower than expected user growth in the second quarter, prompting panic from a market obsessed with red-hot FAANG stocks. On Thursday, The Facebook had the single worst day in stock market history, shaving off over $120 billion from its market cap as the tech bellwether’s stock dropped over 20%.
Facebook wasn’t the only high-growth (but slowing…) tech stock to tumble, however. It took the rest of FAANG down with it. Even Alphabet (GOOGL), which had posted earnings that handily beat the day before, dove into the red.
“I think of the FAANG stocks as a game of great expectations. Facebook’s earnings announcement marked a break in those expectations,” said Joe Smith, senior market strategist for CLS Investments.