A week before coronavirus crashed the price of oil, tech giants Facebook, Amazon, Netflix, and Google (FANG) together added $251 billion to their market values — their biggest gain since Mark Zuckerberg took his social media platform public in 2012, reports the Wall Street Journal.
The FANG+ index, a set that includes the likes of Apple, Alibaba, Tesla, and Twitter, is actually up by almost 10% year-to-date.
On the other hand, the S&P 500 index — a popular collection of 500 stocks that represents the overall US market — is down by just under 14% over the same period.
“[Big tech stocks] are the old reliable and old standby for portfolio managers,” one portfolio manager told the WSJ. “Nobody is going to get fired for adding Apple stock in a downturn like this.”
However, Hard Fork reported that Wall Street gurus Goldman Sachs had recently downgraded Apple stock to a “sell.” The firm’s analysts predicted that iPhone shipments would slow by 36% later this year, which could see its stock price drop nearly 20% from current prices.
So, the markets generally appear confident that tech’s biggest can thrive in the new coronavirus-inspired consumer landscape, but the truth will only come out in their Q1 earnings reports, which are scheduled to start dropping over the next few weeks.