FAANG shares (from Facebook, Apple, Amazon, Netflix and Google) is targeting $40b. loss, while China has a very small role. Apple's downgrade after the last week continues after Goldman Sachs has expressed concern that the rapidly dwindling consumption in China could have a negative impact on US export-oriented companies.
Netflix, for its part, also suffered losses for Goldman as the bank lowered its expectations for the company in the next year, again because of China.
Facebook, along with a wider range of technology companies, has covered some of the losses, but other FAANG giants have not yet found their way to higher values. Amazon.com Inc. and Google-Alphabet Inc. declined by 3% and 2% during the day, while the Chinese components of the NY FANG index, Alibaba Group Holding Ltd., and Baidu Inc. register new and new bottoms.
What to expect in the medium term?
Goldman's lower expectations seem to be coming at a very comfortable moment, as despite the downsides, the FAANG shares are traded at the foot of the All Time High levels. Temporary shocks will have a negative impact on stock prices, as this will help the formation of a healthy correction after which to position Long. Companies remain leaders in their niche, with a long-term competitive advantage that guarantees their success.
Source: Bloomberg Finance L.P.
Charts: Used with permission of Bloomberg Finance L.P.
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