--- title: Is the FAANG era over? - The Hustle description: Facebook, Apple, Amazon, Netflix, and Google have seen better days. image: https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1258212567-HS-News-Brief_2022-05-02T013329.756Z.webp --- # Is the FAANG era over? ![Rob Litterst](https://thehustle.co/wp-content/uploads/2023/01/Rob-Litterst-pic.png?width=48&height=48&name=Rob-Litterst-pic.png) [Rob Litterst](https://hs-sbup.thehustle.co/author/rob-litterst) [Rob Litterst Twitter profile ](https://twitter.com/robbylit) Published: May 02, 2022 Updated: October 11, 2023 Technically, it already was. Between Facebook’s rebrand to Meta and Google’s switch to Alphabet, the acronym should actually be MAANA — but that’s beside the point. ![Is the FAANG era over?](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/1258212567-HS-News-Brief_2022-05-02T013329.756Z.webp?width=595&height=400&name=1258212567-HS-News-Brief_2022-05-02T013329.756Z.webp) Per *Bloomberg*, recent earnings [show](https://www.bloomberg.com/news/articles/2022-04-27/tech-stock-drop-casts-cloud-over-faang-companies?sref=3Ac2yX40) that the FAANG stocks — Facebook, Apple, Amazon, Netflix, and Google — are more vulnerable than previously expected. #### **FAANG stocks…** … have dominated their markets over the last decade, making them popular picks for growth investors seeking lofty returns. But all 5 tech giants have been plagued by recent challenges: - **Facebook** [lost](https://www.forbes.com/sites/roberthart/2022/02/03/facebook-loses-daily-active-users-for-the-first-time--heres-where-theyre-going/?sh=77ec8f1e1e6d) ~500k daily users in Q4 2021, and [suggested](https://www.cnbc.com/2022/04/27/facebook-forecast-points-to-potential-revenue-drop-for-first-time.html?utm_content=null&utm_source=Sailthru&utm_medium=email&utm_campaign=Friday%20Email&utm_term=4ABCD) it could have its 1st YoY revenue drop next quarter - **Apple** recently warned it [could lose](https://www.bnnbloomberg.ca/apple-expects-supply-shortages-to-slash-sales-by-up-to-us-8b-1.1758647#:~:text=Apple%20Inc.%20shares%20slid%20after,that%20the%20company%20just%20reported.) $8B due to supply chain constraints this quarter - **Amazon** [reported](https://finance.yahoo.com/news/amazon-tumbles-12-after-reporting-first-quarterly-loss-in-7-years-160736387.html) its 1st quarterly loss in 7 years Friday, resulting in the stock tumbling ~14% - **Netflix** announced it lost subscribers for the 1st time in over a decade, leading its stock to [drop 35%](https://www.cnn.com/2022/04/19/media/netflix-earnings/index.html#:~:text=Netflix's%20stock%20dropped%2035%25%20on,in%20the%20year%2Dearlier%20quarter.) the next day, and wiping $50B from its valuation - **Google** [showed](https://www.cnbc.com/2022/04/26/alphabet-to-report-q1-earnings-after-the-bell-tuesday.html) slower growth than last year and missed revenue projections for Q1, thanks in part to a weak quarter for YouTube In 2022, all 5 stocks are down, with Apple being the only one outperforming the S&P 500 index. #### **So how bad is it?** It could be worse. Last August, FAANG stocks made up [~19%](https://www.investopedia.com/terms/f/faang-stocks.asp) of the S&P 500 index’s market cap. Today, that number is just below ~15% — a meaningful drop, but still a massive percentage for 5 out of 500 companies. So while the quintet has seen better days, it would be unwise to count them out for good. One investor believes the biggest change facing FAANG is perception: Once considered some of the market’s hottest growth stocks, FAANG may be viewed as more of a value play going forward. **GLOSSARY** - **Growth stocks** are [expected](https://www.investopedia.com/articles/professionals/072415/value-or-growth-stocks-which-best.asp) to beat the market over time due to their future potential - **Value stocks** are established businesses that analysts believe to be undervalued Topics: [Big Tech](https://hs-sbup.thehustle.co/tag/big-tech) ## Follow us on social media prev next - ![Enshittification just keeps happening](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1666508617-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-enshittification_20230712223650-13.webp) ### Enshittification just keeps happening - ![After years of building pricey playgrounds, Big Tech recalibrates](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/995155615-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-Tech-Real-Estate_20230622224458.webp) ### After years of building pricey playgrounds, Big Tech recalibrates - ![TikTok’s new plan to avoid getting banned in the US](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1576652447-HS-News-Brief_2023-01-16T235439.232Z.webp) ### TikTok’s new plan to avoid getting banned in the US - ![Why are there so many tech layoffs?](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/2012563462-HS-News-Brief_2023-01-24T002724.255Z.webp) ### Why are there so many tech layoffs? - ![Is eBay’s brief renaissance over?](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/917426280-HS-News-Brief_2023-02-24T004301.526Z.webp) ### Is eBay’s brief renaissance over? - ![Can Netflix be a lifestyle brand?](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/181502968-HS-News-Brief_2023-02-07T042108.421Z.webp) ### Can Netflix be a lifestyle brand? - ![All rise: Emoji have entered the court](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1748928362-HS-News-Brief_2023-02-02T004506.400Z.webp) ### All rise: Emoji have entered the court - ![What the past year of tech lobbying looked like](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/937681179-HS-News-Brief_2023-01-25T233808.193Z.webp) ### What the past year of tech lobbying looked like - ![Meta, Microsoft team up on map nonprofit](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/799858659-HS-News-Brief_2022-12-16T014636.683Z.webp) ### Meta, Microsoft team up on map nonprofit - ![Apple’s big changes, courtesy of the EU](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/281541661-HS-News-Brief_2022-12-15T001040.995Z.webp) ### Apple’s big changes, courtesy of the EU Pop up for Subscribe to The Hustle Daily Newsletter Subscribe to The Hustle Daily Newsletter Get the 5-minute news brief keeping 2.5M+ innovators in the loop. 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