What's happening with FAANG stocks? - YouTube

Hi, There must be some of you investors who invest in international stocks to diversify their portfolios.

And when it comes to international stocks, the name of faang stocks comes first.

As you might know, Faang is an acronym that represents the 5 most popular US tech companies.

These 5 companies are – Facebook, Apple, Amazon, Netflix, and Google.

But in recent times, there have been some such events due to which there was a lot of up or down in the stock.

So in today's video, we will discuss which companies are affected by which event and the reason for their upward or downward movement.

But before proceeding, if you haven't subscribed to your channel then click on subscribe button now and like the video.

Because we come up with content every week that will help you become a better investor.

So let's now come back to our topic.

First of all, we will talk about Facebook i.e. Meta.

Facebook stock is down 28.69% in just one week.

On Thursday, the company saw a decline of about 26% and due to this its market cap fell by almost $200 billion.

It is the biggest reason for the decline - the decrease in the number of daily active users of Facebook.

This number was 1.93 billion in the third quarter of 2021, which came down to 1.929 billion in the latest quarter.

Apart from this, the second reason is also that Apple has made some changes in its policies which will affect the advertising of Facebook.

Because of this, the reduction in Facebook sales could be less than $10 million.

The company said in the latest quarterly results that in the next quarter, it will generate revenue between $27-$29 billion.

While many financial analysts are expecting this number to exceed $30 billion.

So these are some of the reasons why the share of Facebook has seen a decline.

Now let's talk about another company i.e. Apple.

Apple's stock was also in a downward trend in the last month.

There are many reasons behind the decline in the stock of Apple.

The first reason is that it is expected that the US Federal Bank will increase interest rates to control inflation.

So, the disposable income of consumers will be used, due to which the revenue of companies like Apple can be affected.

The other reason is - lack of chips.

All this is a headache for tech companies.

In addition, bond yields also increased.

Therefore, investors will now invest more money in bonds, reducing the weight of stocks in their portfolios.

And Apple is a blue-chip stock in which many investors invest their money

Now if those investors invest their money in bonds then the demand for Apple stock will decrease.

So these are some of the reasons due to which there was a huge drop in the stock of Apple in the last month.

Now let's talk about the third stock ie Amazon.

Amazon's stock also saw a significant decline in January

The company's stock has gone down 3.44% in the last one month.

There are 2 main reasons for a stock decline.

The biggest reason for this is that Amazon belongs to the consumer discretionary sector

That is, it offers consumers the goods that come in the category of their "wants".

And due to rising inflation, this sector is one of the worst-performing sectors in recent times.

Because when inflation rises, consumers prefer to spend more on their "wants" rather than on "needs".

Due to this, there will be a decline in the sales of companies like Amazon.

Apart from this, the interest rate hike that we talked about in the previous point is also applicable to Amazon.

So due to these 2 reasons, there was a decline in the stock of Amazon for the last month.

Now let's talk about the fourth stock i.e. Netflix.

The stock has also seen a decline of 25.87% in the last month.

Netflix recently estimated that the company will have about 2.5 million subscribers in the first quarter of 2022.

But this number is down about 40% from the same quarter last year when it was 4 million.

Apart from this, the second reason is also that customer acquisition growth is still not up to the pre-Covid level.

Apart from this, the company's operating margin was 14.4% in the same quarter last year, which is just 8.2% in the quarter.

The company was doing around 8.5 million customers in the quarter but was able to add 8.3 million customers to the company.

Netflix stock fell for all kinds of reasons.

This was followed by Netflix co-CEO Reed Hastings, who bought approximately $20 million worth of shares in the company.

Now let's talk about the last stock i.e. Google.

The trend in Google is slightly reversed.

There was also a slight decline in its stock in the last few months.

But in the last week, there was a very good recovery in the stock and in the last one week, the stock of the company has increased by 6.81%.

There are 2 main reasons for this.

The first reason is that Google has recently announced a stock split.

After the stock split, more retail investors will be able to invest in its stock and the liquidity will also increase.

Due to these reasons, there was a boom in its stock.

Apart from this, according to the recent quarterly results, Google's ad revenue has increased by 33%

Along with this, we discussed in the first point that Apple's new policies will harm Facebook's revenue.

And Google can benefit from the experience of some analysts.

Now advertisers can now prefer Google over Facebook.

For all reasons, Google stock saw upward momentum last week.

So here we discussed what are the developments in Faang Stocks in recent days.

If you are in stocks, then after improvement and want to invest in them, then there are many ways for it.

Like, you can invest directly in US stocks or you can invest in such international mutual funds or ETFs whose exposure to stocks.

Do let us know by commenting whether you have invested in faang stocks or are going to do so or not.

We hope that you will like this video.

If you want more such videos on US Stocks and Foreign Investment, do let us know in the comments.

We remind you that these videos are for educational purposes only, and do not recommend any kind of buy/sell.

Also, we would like to tell you that we have launched a new channel named Groww Plus

Here we post videos on interesting topics like Career, Investment, Health, Entrepreneurship, and many more.

So if you also want to be your best version and want to create wealth, then you must subscribe to Groww Plus.

You will find the link to the channel in the description of the video.

Don't forget to subscribe to the Groww channel for the latest updates about the market. Bye