Apple's stock tumble seems to make the verdict unanimous.... the FAANG bull market has ended
- 2 months ago
For the first time, all five FAANG stocks are in bear markets.
Apple Inc.’s stock AAPL, -4.78% made it unanimous Tuesday, as it tumbled 4.8% to the lowest close since May 3, helped there by a price target cut at Goldman Sachs. The stock closed 23.7% below its Oct. 3 record close of $232.07.
Many on Wall Street define a bear market as a decline of 20% or more from a bull-market peak. On Monday, Apple’s stock dipped briefly into bear market territory, but pared losses to close 19.9% below its record. Read more about how Apple flirted with a bear market.
Apple‘s last bear market started on Aug. 21, 2015, and didn’t end until Aug. 9, 2016. The stock fell as much as 32% during that downturn.
Goldman analyst Rod Hall cut his stock price target to $182 from $209, citing concerns over “deteriorating demand,” following the technology giant’s disappointing holiday season guidance and revenue guidance cuts from multiple smartphone suppliers.
Amazon.com Inc. shares AMZN, -1.11% had entered a bear market on Oct. 29. With the stock shedding 1.1% Tuesday, it ended the day 26.7% below its Sept. 4 record of $2,039.51. Amazon’s previous bear market, in which the stock tumbled as much as 30.5%, ended on March 1, 2016, just four weeks after it started.
Shares of Netflix Inc. FB, +0.67% FB, +0.67% FB, +0.67% have been in a bear market since Oct. 24, which was just about three weeks after the previous one ended. Facebook Inc. FB, +0.67% been in a bear market the longest, since July 30, or only about three months after the preceding bull market started.
Meanwhile, the Nasdaq Composite Index COMP, -1.70% of which all the FAANG stocks are components, has declined 14.8% from its Aug. 29 record close of 8,109.69; the Dow Jones Industrial Average DJIA, -2.21% has lost 8.8% since closing at a record 26,828.39 on Oct. 3 and the S&P 500 index SPX, -1.82% is 9.9% below its Sept. 20 record of 2,930.75.