So basically, FAANG stocks have taken a bit of a bath over the last month mainly because growth rates are slowing down and investors are panicking that there are no immediate catalysts for growth.
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Facebook has been the worst performer, falling 21% so far this year due to well-publicised data issues and even the mighty Amazon has fallen 20% from recent highs.
For what it’s worth, I still believe in these companies as they continue to provide services that are profitable and in high demand.
They use their cash flow to continue to innovate and expand into different areas and bring their existing expertise to the party.
Within this group, I think that although Apple has come off from its $1tn valuation, it is continuing to make advances in the services side of its business and there is the prospect of new technology around the corner in the form of mobile phones with foldable screens.
Samsung recently announced a prototype foldable phone and said that such a model could be in production in the next three to four months.
If this proves to be popular, I suspect that Apple can easily jump on the bandwagon with its own product.
I think that this could be the biggest technological innovation in mobile phones we’ve seen for years and it could cause a break in the ever-lengthening mobile phone replacement cycle.
