*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)
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
Hear from Gabino & Stephen Roche on Saphyre’s institutional AI platform that centralizes pre‑ and post‑trade data, redefining settlement speed and accuracy.
