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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