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Facebook’s data scandal is hurting FANG stocks

Facebook’s data scandal is hurting FANG stocks
[Photo: Negative Space/Pexels]

FANG is a frequent acronym used for the stocks of four of the biggest technology companies: Facebook, Amazon, Netflix, and Google (now Alphabet). All of those stocks have been hammered in recent days as fund managers have begun to flee from them, reports Reuters. But while it’s obvious why Facebook’s share price may be plummeting, why Amazon’s, Netflix’s, and Google’s (along with other tech stocks like Apple and Microsoft)?

The fund managers are worried that the low-regulation times might be up for some of the FANG companies that make their money turning customers into products by packaging their data and selling it to advertisers. More regulation generally means companies are as free to do whatever they want with the business models they have, which could impact their bottom line. In recent weeks Facebook has fallen as much as 15% while other major tech stocks tumbled over 6% yesterday. In 2017, FANG stocks surged 33%.