FAANG Stocks Continue Scaling Up Despite COVID-19 Disruption

UTC by Steve Muchoki · 3 min read
FAANG Stocks Continue Scaling Up Despite COVID-19 Disruption
Photo: Shutterstock

FAANG stocks have been defying the coronavirus market disruption as they continue to scale higher every day. The NYSE FANG+ Index is up around 21% since the beginning of the year.

The FAANG stocks which consist of Facebook Inc (NASDAQ: FB), Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX) and Google LLC (NASDAQ: GOOGL) (NASDAQ: GOOG), have risen a significant figure in the past few months, despite coronavirus negatively affecting most traditional stocks markets. According to metrics provided by MarketWatch, the FANG stock index has experienced a 52 weeks low of 2,244.23, and a high of 3,905.78.

In the past month, it has added slightly above 10% and around 6% in the past five days. In addition, the stocks have jumped by 52.47% in the past year, and slightly above 21% year-to-date. This is in contrast to what the Dow Jones has recorded over the same period, whereby it dropped by around 15% since the calendar flipped and lost around 6% over the past year.

FAANG Stocks amid Covid-19

As a result, a significant number of stock investors are turning to the FAANG stocks as they can offer profits in return. Especially during such difficult times when most jobs are not guaranteed due to the unpredictable nature of the novel coronavirus.

“With this unprecedented Covid-19 pandemic causing near-term consumer/enterprise spending abyss and the markets under major pressure, the FAANG names have been viewed as relative safety blankets in this scary category 5 storm,” said Dan Ives, Wedbush tech analyst.

As the world governments strive to control the spread of the coronavirus, the best method at the time of reporting has been controlling peoples’ movement and freedom. The biggest beneficiary of such orders has been the tech and cloud industries, which offer services through the internet. 

For example, Amazon which heavily relies on its online e-commerce to manage its orders has experienced a sharp uptick in the demand magnitude. As a result, AMZN stocks have been on the rise both in the short term and long term basis. In the past year, it has added 31.71% and around the same figure since the year began to date. In addition, Amazon shares have added above 3% in the past month and also five days.

On the other hand, Netflix shares have recorded almost the same figures in the same period, as more people subscribe to online TV shows and movie streaming site. In the past year, its shares have added around 25% and slightly above 16% in the past three months.

Analysts are anticipating the FAANG stocks might continue rising as long as the coronavirus remains a threat to the human health system. The high number of informed and educated people around the globe makes them drawn towards such stocks to reap more despite the market depression.

You can read how other companies are working amid the pandemic in the coronavirus news section.

Business News, Market News, News, Stocks, Wall Street
Steve Muchoki
Author Steve Muchoki

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