Monday, July 15, 2019

FANGs, Apple, Microsoft are viewed as U.S. bubble blowers

Shares of the largest U.S. technology companies are in a bubble that’s on its way to bursting, according to Research Affiliates LLC. The firm cited the weight of the FANG stocks -- Facebook Inc., Inc., Netflix Inc. and Google’s owner, Alphabet Inc. -- along with Apple Inc. and Microsoft Corp. in the Russell 1000 index in a report last week. Surging market values lifted the so-called FANMAG stocks’ share of the index to 14.9% as of Friday, according to data compiled by Bloomberg. Their weight rose from 6.8% in 2012, when Facebook went public. Research Affiliates compiles indexes that don’t use market value.

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