The Wild Ride of the FANGMANTIS Stocks v. Rest of Market

The Wild Ride of the FANGMANTIS Stocks v. Rest of Market

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These 10 stocks, weighing 25% of the total market, are on one heck of a ride, now in the wrong direction. Rest of market has gone nowhere in nearly 3 years despite huge volatility.

By Wolf Richter for WOLF STREET.

The FANGMANTIS struck again. This WOLF STREET index of ten giant tech stocks, accounting for 25.5% of the total stock market capitalization as tracked by the Wilshire 5000, fell 1.1% today, though the broader market eked out a minuscule gain, with the S&P 500 up a hair.

These 10 stocks – Facebook, Apple, NVIDIA, Google parent Alphabet, Microsoft, Amazon, Netflix, Tesla, Intel, and – are considered “tech” though they’re also into ecommerce, auto manufacturing & auto retailing, social media, film production and distribution, and the like. Their combined market value (outstanding shares times share price) at its high on September 2 was $9.3 trillion. Since then, the FANGMANTIS Index has dropped by 12.9%, or to put real dollars to it, by $1.20 trillion (market cap data via YCharts):

And yet, the FANGMANTIS Index has only fallen back to where it had been about a month ago, unwinding only the 15% gain between August 14 and September 2, that was part of the most astounding blistering blow-off-the-top 24% rally that had started on July 1. And despite the crash in late February and early March, the index is still up about 40% for the year.

While the FANGMANTIS index – I purloined the idea from a WOLF STREET comment by Duane – has dropped 12.9% from its closing high, the individual closing highs of the 10 stocks were spread over a period between August 31 through September 2, and these stocks have dropped between 5.8% (Intel) and 25.1% (Tesla) from their respective highs (date in parentheses):

  • Alphabet [GOOG]: -12.2% (Sep 2)
  • Amazon [AMZN]: -11.9% (Sep 2)
  • Apple [AAPL]: -16.5% (Sep 1
  • Facebook [FB]: -11.9% (Sep 2)
  • Microsoft [MSFT]: -12.0% (Sep 2)
  • NVIDIA [NVDA]: -15.3% (Sep 2)
  • Netflix [NFLX]: -13.7% (Sep 1)
  • Tesla [TSLA]: -25.1% (Aug 31)
  • Intel [INTC]: -5.8% (Sep 2)
  • Salesforce [CRM]: -13.6% (Sep 1)

These 10 stocks dominate the Nasdaq, and so it too fell today (-0.6%). From its closing high on September 2, it’s down 10%.

Alibaba [BABA] is not in the FANGMANTIS because it’s not a common stock; it’s an ADR, issued by a mailbox company in the Cayman Islands that has a contract with an entity of Alibaba in China. Similar story with other big ADRs, such as Taiwan Semiconductor [TSM].

And all the other stocks without the FANGMANTIS?

The FANGMANTIS accounted for 25.5% of the total market, as tracked by the Wilshire 5000, which includes all 3,415 or so stocks listed in the US. So how did the overall market do without the FANGMANTIS?

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Wolf Richter

In his cynical, tongue-in-cheek manner, he muses on WOLF STREET about economic, business, and financial issues, Wall Street shenanigans, complex entanglements, and other things, debacles, and opportunities that catch his eye in the US, Europe, Japan, and occasionally China. WOLF STREET is the successor to his first platform… TP-Title-7-small-200px …whose ghastly name he finally abandoned in July 2014. Here’s the story on that. Wolf lives in San Francisco. He has over twenty years of C-level operations experience, including turnarounds and a VC-funded startup. He earned his BA and MBA in Texas and his MA in Oklahoma, worked in both states for years, including a decade as General Manager and COO of a large Ford dealership and its subsidiaries. But one day, he quit and went to France for seven weeks to open himself up to new possibilities, which degenerated into a life-altering three-year journey across 100 countries on all continents, much of it overland. And it almost swallowed him up.