Tech's 5 FAANG stocks just saw $150 billion of their market value vaporized, and Apple is reeling the hardest

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Tech's 5 FAANG stocks just saw $150 billion of their market value vaporized, and Apple is reeling the hardest

Tim Cook

Yves Herman/Reuters

Apple CEO Tim Cook

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  • Shares of Facebook, Apple, Amazon, Netflix and Google - known as the FAANG stocks- tumbled as China hit back at the US after the Trump Administration said it planned new tariffs.
  • Apple took the biggest hit as its share fell 5% on worries that the new tariffs are a "potential gut punch" for the iPhone maker. The plunge represented $53 billion in market value.
  • The FAANG market cap losses totaled $150 billion, the value of a company bigger than either Costco or IBM.
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The giants of the US tech industry shed $150 billion in market value on Monday, as China hit back in an escalating trade war with the US.

The lost market value is the equivalent of a company the size of Costco or IBM instantly evaporating into thin air, a sobering sign of how the raging trade tit-for-tat is rattling Wall Street. For tech companies, which are heavily reliant on China for components and manufacturing of their products, the trade war is especially concerning.

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The battle heated up after China let its currency, the yuan, weaken to below 7 to a dollar on Monday, in response to the Trump Administration's recent announcement that it will impose new tariffs on Chinese goods. That triggered a selloff that swept the broader markets. The Dow Jones Industrial Average plunged 767 points, or 3%, to close at 25,718 on Monday, while the Nasdaq lost 278 points, or 3.5% to close at 7,726.

Shares of the tech companies, known collectively as FAANG - Facebook, Apple, Amazon, Netflix and Google - set the pace for the broad market retreat.

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Apple was the biggest loser in the group, dropping 5.2% to close at $193.34, wiping away $53 billion from the iPhone maker's market cap. Apple was seen as the most vulnerable company in the intensifying trade war. Wedbush analyst Daniel Ives called the new Trump Administration tariffs a "potential gut punch" for the Silicon Valley icon.

Facebook fell nearly 4% to close at $181.73, while Amazon retreated 3.2% to close at $1,765.13, Google was off 3.5% to close at $1,152.32 and Netflix slid 3.5% to close at $307.63.

The market cap loss combined represented value of a company bigger than a Costco. The retail giant ended the trading session with a market cap of $117 billion after its shares dropped 2.7% to close at $265.10.

The market loss decline also was bigger than a tech behemoth like IBM which now has a market cap of $125 billion after its stock sank 4.4% to close at $140.76.

Got a tip about Facebook, Apple, Amazon or another tech company? Contact this reporter via email at bpimentel@businessinsider.com, message him on Twitter @benpimentel. You can also contact Business Insider securely via SecureDrop.

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