Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

FAANG Slips On Fear Of Money Tightening, Regulatory Action To Tame Big Tech

Stock MarketsMay 11, 2021 07:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Dhirendra Tripathi

Investing.com – The FAANG pack was down 1%-2% in Tuesday’s premarket as traders grappled with multiple factors pulling the stocks lower, ranging from fears over high valuations to monetary tightening to regulatory action to tame Big Tech.  

Apple (NASDAQ:AAPL) was leading the other four, down just short of 2%. Facebook (NASDAQ:FB) was down 1.5% while Amazon.(NASDAQ:AMZN), Netflix (NASDAQ:NFLX) and Alphabet (NASDAQ:GOOG) were all lower by 1.3%-1.4%.

Most of the tech shares have been trading close to the year’s highs, propelled by record earnings on the back of pandemic-led consumption of digital services. Unprecedented liquidity sloshing around as a result of fiscal and monetary stimulus has fueled the rally, as has record amounts of margin debt.

With earnings out of the way and the U.K. and Canadian central banks now trimming their bond buying, fears are the Fed could also begin to do the same sooner even though it hasn’t so far indicated any such move. Unemployment remains high too, a number the Fed is most focused on and one that it has said that will hold it back from a premature tightening.

The Fed has on more than one occasion said it is comfortable with an inflation higher than 2% but some market makers choose to forget that on a given day.

Many Big Tech companies, particularly Facebook and Alphabet, and Apple also in Europe, are under increasing scrutiny over alleged anti-competitive practices and sharing of users’ data with advertisers and third-party apps.

On Monday, Citi (NYSE:C) downgraded Facebook and Alphabet to 'neutral' from 'buy' due to what the analyst saw as “a more challenging environment for companies dependent on internet ad growth”.

 

 

FAANG Slips On Fear Of Money Tightening, Regulatory Action To Tame Big Tech
 

Related Articles

UK's Domino's expands share buyback as profit jumps
UK's Domino's expands share buyback as profit jumps By Reuters - Aug 03, 2021

(Reuters) - Domino's Pizza (NYSE:DPZ) Group on Tuesday expanded its share buyback programme and said business in the second half of the year had started well, as orders were...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email