Frontline US technology stocks are helping investors pocket healthy gains, with shares of Facebook, Google, Amazon, and others outperforming many global markets so far this year. This is despite these stocks not mirroring last year’s stellar performance this time around. The biggest technology names Facebook, Amazon, Apple, Netflix, Google, and Microsoft, collectively called FAANGM stocks, have soared at least 14% each so far since January, as investors focused back on proven businesses amid rising inflation concerns. FAANGM stocks are the most dominant technology names listed on the tech-heavy NASDAQ index. Individually all FAANGM stocks, except Netflix, have outperformed KOSPI, KOSDAQ, Nikkei 225, Bovespa index, and even India’s NSE Nifty 50.
FANNGM stock returns in 2021
So far this year, Mark Zuckerberg’s Facebook has seen its share price soar 37% to now trade at $369 apiece. The stock reached a 52-week high of $375 per share just the previous week. Facebook’s 37% rally so far in 2021 is an addition to its 31% return in the previous year. Meanwhile, unlike Jeff Bezos heading into space, his company Amazon has seen only a 14.75% rise, keeping it firmly on the ground. However, even this 14.75% rally in Amazon is better than many global stock markets. On Friday Amazon settled at $3,656 per share on the closing bell.
The stock of Apple, the maker of iPhone, iPad, and MacBooks, has also gained so far this year but remains among the least gainers, along with Amazon. Apple stock trades at $148.56 per share, jumping 14.8% so far this year. The company has seen its ups and downs this year, falling to as low as $116 apiece in March. Apple’s 14.8% jump this year is an addition to its 83.15% rally last year. On the other hand, Netflix — one of the best performers from last year — has lost its shine. So far this year, Netflix is down 1.42% trading at $515 per share, as the worst performer among the FAANGM stocks. In 202, Netflix had jumped a massive 66%.
However, internet behemoth Google has turned the tables. In 2020, Google was up only 29%, but so far this year the stock has bounced back strongly and zoomed 54% to now trade at $2,660 per share. Google, trading under its parent Alphabet’s name, hit a fresh 52-week high just last Friday. Lastly, among the FAANGM lot, Microsoft is already inching closer to beating its 2020 returns with still nearly half a year to spare. Microsoft share price has soared 33% to trade at $289 per share.
Decadal returns strong
“The nearest big trigger for the FAANGM stocks is likely to be anti-trust legislation,” said Richard Smith, CEO of The Foundation for the Study of Cycles, a research firm. “There is considerable bipartisan and public support for doing “something” about big tech dominance. This will create volatility in the prices of these shares but is unlikely to seriously change their long-term trajectories unless congress surprises us with something truly revolutionary like true data portability for users,” he added.