Tue. Feb 7th, 2023
Упавшие FAANG, уничтожение Nasdaq и ралли технологических компаний

The Nasdaq 100 lost $5.6 trillion this year. market value

The year 2022 will stick in the minds of investors as the one when the major tech narrative broke, ending years of solid market leadership.

Amazon.com Inc., Alphabet Inc., Tesla Inc., Nvidia Corp., and Meta Platforms Inc. are among the large technology businesses that have lost a third or more of their value this year. The Nasdaq 100 Index, which focuses on technology, has also dropped 29%, wiping away approximately $5.6 trillion in market value.

Rising inflation and interest rates have increased the likelihood of a recession in 2023.

The favorable conditions that supported years of technological advancement have been undercut by rising inflation and interest rates, increasing the likelihood of a recession in 2023.

The so-called FAANG group of firms, which dominated the market, lost relevance as a result of the stock sell-off.

The weight of the S&P 500’s ownership cohorts, which include Facebook, Amazon, Apple, Netflix, and Google, is currently about 13%, which is the lowest level in more than two years and below the record 19% expected in 2020.

Even if the FAANG group of companies continues to enjoy popularity on Wall Street, history demonstrates that the market leaders of one generation rarely control the following.

 

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