The market’s favorite technology stocks are tanking as investors growing concerned over the companies’ ambitious growth targets following disappointing financial results from Facebook and Netflix this month.
The NYSE FANG+ index is down more than 10 percent from its high of 3,062.88 in mid-June after its 2.7 percent drop Monday to the 2,737 level.
FANG is an acronym created by CNBC’s Jim Cramer for the top-performing technology stocks — Facebook, Amazon.com, Netflix and Alphabet (formerly Google).
The NYSE FANG+ index tracks the performance of FANG stocks along with several other high-growth technology shares such as Nvidia, Baidu and Tesla. The index began in 2014.
Larry McDonald of The Bear Traps Report and a CNBC contributor pointed to several reasons beyond the Facebook and Netflix earnings disappointments for the drop including the rising dollar hurting overeas profits and the risk of a political backlash against these tech giants here and around the globe.