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Why FANG Stocks Are Still Positive Year-to-Date Despite Hurdles

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Dec. 4 2020, Updated 10:52 a.m. ET

Stock markets crashed on Monday, February 5

The stock market has seen a huge correction over the last few sessions. On Monday, February 5, the broad S&P 500 Index (SPY) fell a whopping 4.1%. The stock markets have almost completed nine years, which is high by any standard.

FANG stocks have outperformed

The so-called FANG stocks—Facebook (FB), Amazon (AMZN), Google (GOOGL), and Netflix (NFLX)—and some other tech stocks still have impressive positive year-to-date (or YTD) returns despite the carnage on Monday.

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Netflix stock is up a stunning 32.5% YTD, thanks to continued user base growth abroad and back home. Amazon stock has climbed 18.9% YTD on the back of record revenue and the earnings it posted in fiscal 4Q17. Twitter (TWTR) is up 4,7%, and Facebook is up 2.7%. Alphabet is up 1%. However, Apple (AAPL) has fallen nearly 8% YTD, as its unit sales declined in fiscal 1Q18.

However, higher Treasury (TLT) yields, which are increasing due to fears of inflation, pose a threat to stock markets. This threat, along with still rich valuations, might mute stock return expectations for the year.

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