At the same time, elevated inflationary pressures, macroeconomic weakness and interest rate uncertainty continue to place downward pressure on FAANGM in August, after a brief relief rally in July. “Now, we are starting to see FAANGM stabilise after its steep sell-off earlier this year, down only 0.7% over the last 3 months,” write Woo and Koeswoyo.
PhillipCapital Research analysts Jonathan Woo and Maximilian Koeswoyo have kept their “overweight” call on the FAANGM sector as they believe that these counters will continue to be winners in the long run. FAANGM refers to Facebook (now Meta Platforms), Amazon, Apple, Netflix, Google (now Alphabet) and Microsoft.
In the month of August, FAANGM stocks declined 5.0%, modestly outperforming the Nasdaq’s loss of 5.2%. Meanwhile, the S&P 500 also declined 4.2% in August.
