Big Stocks Rock NASDAQ as Two FAANGs Bite the Dust
By David Haggith
TheGreatRecession.info
July 26, 2018
Two of the original FAANG stocks that carried the US stock market higher throughout the Fed’s fake recovery from the Great Recession have revealed in the past week how quickly overpriced, bubblicious stocks can turn on investors and bring a rising index down.
Facebook, which put the “F” in FAANG, showed it knows the foulest meaning of an “F” when its second-quarter report card got graded. Overnight, Facebook lost $150 billion in value, which was a drop of over 20%, putting the stock, at opening, in its own bear market. By the end of the today’s actual trading (Thursday) the stock had settle at down $119 billion (-19%), which still set a record as the worst corporate crash in the history of the US stock market. Pronounced one analyst of Facebook like a referee, “Bears win this quarter.”
Just for perspective, Facebook’s crash today was bigger than the entire market value of Nike, General Electric, Goldman Sachs, Blackrock, Starbucks, Airbus, and several South American economies all combined. The equivalent of the loss of several of America’s greatest corporations and a few South American economies all in one day is truly the hardest fall anyone has ever taken. Those who were feeling giddy about their retirement funds being invested in tech stocks yesterday might not being feeling quite so giddy today.
If you were still heavily invested in tech stocks, you cannot say you did not get plenty of warning here. And, as one writer wrote today, “It’s not too early to be late” in getting out. Or you can wait until it gets more interesting if this individual corporate cliff-dive wasn’t enough of an adrenaline rush for you.
Showing how easily investors have been beguiled into thinking what goes up can never come down, one analyst described Facebook’s announcements as “bombshells.” The extremely foul report led many stock analysts to seriously and instantly downgrade the stock. The essence of the report was that …
The company said late Wednesday profit margins would plummet for several years due to the costs of improving privacy safeguards and slowing usage in its biggest advertising markets…. Facebook also warned that the toll would not be offset by revenue growth from emerging markets. (Newsmax)
The Rest…HERE
