Inside FANG stoopid

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Cross-posted from FTAlphaville:

In the market sell-off during the coronavirus crisis, the fabled FANG stocks (that’s Facebook, Amazon, Netflix and Google) have diverged. Netflix and Amazon have split from their compatriots due to their business models being uniquely suited to a stay-at-home driven economic shock:

The divergence is a reminder that, for all their attempts to diversify their business models — whether it be in cloud computing or digital currencies — Facebook and Google still collect the vast majority of their revenues from advertising. A market which historically has been highly cyclical.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.