>> Five of this year's most popular tech stocks, Facebook, Apple, Amazon, Netflix, and Alphabet's Google, aren't looking as fabulous to investors, hoping to ring in the new year with growth. Shares of the FANGs are down by an average of 25.6% since the first quarter. And Reuters correspondent David Randall says fund managers are starting to reconsider these stocks as a single block.
>> So Facebook is what caused the FANG group to splinter apart first. They dealt with privacy and data issues all year long. Since then though, all the other companies have pretty fundamental things they're doing with now, too. Netflix is losing Disney and Fox content, at the same time their cash burn rate is going up.
Google, they're getting less money for their YouTube and Google search revenues because more people are going to Amazon to search for things like products. Amazon, their costs are going up overall, and they're revenues are not coming gin as quickly as analysts expected. And Apple has the problem that iPhones are a pretty mature product now.
People don't necessarily line up to get the new one as they did before, so how can this company still grow quickly when it's so large?.>> Analysts' biggest concern that Facebook, after admitting this year that data from 87 million users was sold to Cambridge Analytica, is the least likely to rebound quickly.
>> And that's basically because they have to change their business model in many ways. People don't trust the company necessarily with their data and their privacy anymore. So they have to pivot and say first, we have to regain users trust and how do we still make money from that?
>> With lawmakers considering new social media regulation, investors and fund managers are looking at other trending growth areas.>> So, they're looking at things like Roku which is still benefiting from core cutting, and people moving away from traditional TV. They're also looking at things like VISA which is benefiting from more peer-to-peer payments, moving away from cash.
And then we're looking at things like Microsoft, which is benefiting more from people moving to the cloud for software as opposed to just buying traditional software.