Last year, the market cap of Facebook’s parent company Meta, Apple, Amazon, Netflix, Google, and the market cap of five other major technology companies fell by more than $3 trillion, or gained about 3,789 trillion in our money.
The Wall Street Journal reported on the 1st that the ‘FAANG’, which refers to these five major technology companies, performed worse than ever in the stock market in 2022.
Meta stock has plunged 64% over the past year, Netflix has been cut in half with a 51% drop, and the other three companies have also lost at least 27%.
The related drop in FAANG, a large cap stock, has also dragged down the Standard & Poor’s 500 Index, which reflects the stock prices of the 500 largest US companies.
The FAANG’s weight in the S&P 500 also fell from 17% in 2021 to 13% last year due to a sharp decline in market cap.
FAANG’s poor performance is attributed to the US Federal Reserve’s aggressive rate hikes to contain the worst inflation in more than 40 years.