*By Lauren Babbage*
Trade war concerns have been plaguing the markets for weeks, but until recently the FAANG stocks were largely immune. But that might be about to change.
The big tech companies ー Facebook, Apple, Amazon, Netflix, and Google parent Alphabet ー were unable to recoup losses on Tuesday after seeing precipitous falls to start the week. Netflix alone was down almost 6 percent Monday, its biggest percentage loss in nearly two years.
That came after President Donald Trump said early in the week that he was considering restricting Chinese investments in U.S. companies. On Tuesday, though, he would ease off those toughened rules.
But Trump's position on trade has been known to vacillate, and if his ultimate stance does target technology companies directly Jason Ware, chief investment officer at Albion Financial Group, told Cheddar FAANG stocks will likely take a hit.
Apple, in particular, could be affected. China represented nearly 20% of the iPhone maker's revenue in 2017 and is a major source of components and manufacturing for the company.
But will any sell-off last? Ware doesn't necessarily think so.
"I think it's difficult to paint a picture that they are overvalued. In fact, we think they are undervalued relative to their growth and relative to the low-interest, low-inflation environment," he said.
Shares of Facebook, Amazon, Netflix, and Google all hit all-time highs last week.
For the full segment, [click here.](https://cheddar.com/videos/will-faang-stocks-continue-to-beat-market-slumps)
Joe Cecela, Dream Exchange CEO, explains how they are aiming to form the first minority-controlled company to operate an exchange in U.S. history. Watch!
A Michigan judge is putting sponges in the hands of shoplifters and ordering them to wash cars in a Walmart parking lot when spring weather arrives. Genesee County Judge Jeffrey Clothier hopes the unusual form of community service discourages people from stealing from Walmart. The judge also wants to reward shoppers with free car washes. Clothier says he began ordering “Walmart wash” sentences this week for shoplifting at the store in Grand Blanc Township. He believes 75 to 100 people eventually will be ordered to wash cars this spring. Clothier says he will be washing cars alongside them when the time comes.
The State Department had been in talks with Elon Musk’s Tesla company to buy armored electric vehicles, but the plans have been put on hold by the Trump administration after reports emerged about a potential $400 million purchase. A State Department spokesperson said the electric car company owned by Musk was the only one that expressed interest back in May 2024. The deal with Tesla was only in its planning phases but it was forecast to be the largest contract of the year. It shows how some of his wealth has come and was still expected to come from taxpayers.
At 100 years old, the Goodyear Blimp is an ageless star in the sky. The 246-foot-long airship will be in the background of the Daytona 500 — flying roughly 1,500 feet above Daytona International Speedway, actually — to celebrate its greatest anniversary tour. Even though remote camera technologies are improving regularly and changing the landscape of aerial footage, the blimp continues to carve out a niche. At Daytona, with the usual 40-car field racing around a 2½-mile superspeedway, views from the blimp aptly provide the scope of the event.
You'll just have to wait for interest rates (and prices) to go down. Plus, this deal's a steel, the big carmaker wedding is off, and bribery is back, baby!
