Tech Stocks Defy Bad Press to Profit

In the face of some significant corporate governance issues, investors continue to want to hold the US technology giants. Why?

Cherry Reynard 27 June, 2018 | 7:18AM
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The US has once again led global stock markets for the year to date. However, those gains have been drawn from a narrow selection of stocks. Without the impact of the FANG tech stocks – Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Google (GOOGL), the S&P 500 would be in negative territory this year. This performance follows a strong year in 2018, where share prices for these companies rose 30-40%.

Yet news flow has been almost universally negative. From Mark Zuckerberg being forced to testify before Congress, to new data protection law GDPR, to social media addiction, many believe Big Tech has been slow to address its problems. In the face of some significant corporate governance issues, investors continue to want to hold the US technology giants. Why?

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Allianz Technology Trust Ord313.02 GBP0.81Rating
Alphabet Inc A2,816.00 USD0.00Rating
Amazon.com Inc3,462.52 USD0.00Rating
Facebook Inc A364.72 USD0.00Rating
Janus Henderson Glb Tech Leaders I Acc3,987.10 GBP0.51Rating
Netflix Inc589.35 USD0.00Rating

About Author

Cherry Reynard

Cherry Reynard  is a financial journalist writing for Morningstar.co.uk.

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