Some of the tech sector’s biggest names have seen a strong rebound in their stock prices since the stock market hit a low point on Christmas Eve, with Netflix and Amazon rising more than 20% since then.
For much of 2018, tech stocks were among the best performers in the U.S. stock market. Once a sudden selloff began in the fall, however, the FAANG stocks—Facebook, Apple, Amazon, Netflix and Alphabet—saw volatile declines in their stock prices as concerns about their high valuations caused many of them to tumble.
Following weeks of declines, stock indexes reached a low point on Christmas Eve, typically a sleepy trading session for investors. Concerns about a U.S.-China trade war and rising interest rates had investors concerned. A tweet from President Trump that led investors to worry he was considering firing the Federal Reserve Chairman caused the Dow Jones Industrial Average to fall 650 points in a day.
Since then, the Dow has risen 8% and some of the FAANG stocks have outperformed it. (nflx) Netflix has risen 35.3% and (amzn)Amazon has gained 21.3%, according to Yahoo Finance. (fb)Facebook’s stock has advanced 11%. Alphabet, meanwhile, has underperformed the Dow, rising 7.9%.
Apple is the only FAANG stock that is trading below its closing price on Christmas Eve, falling 1.1% from that level. Last week, Apple CEO Tim Cook published a letter to shareholders saying that revenue in the last quarter of 2018 would be $84 billion, well below analyst forecasts and a 4.8% decline from the $88.3 billion revenue in the same quarter a year earlier.