FANG stock value PLUNGE: Over £100BILLION wiped off Facebook, Apple, Netflix, Alphabet

Fears of a major regulatory crackdown in the sector sparked chaos for Fang stocks – Facebook, Apple, Netflix and Google – on Monday, with around $137billion (£108billion) being wiped off market values. Alphabet lost $52billion (£41billion) or 6.9 percent from its market value, while Facebook shares lost about $41billion (£32billion) or 5.7 percent of its worth. Amazon was down as much as 5.4 percent and Apple as much as 2.7 percent. The tech-heavy Nasdaq dropped into correction territory, having lost 10 percent over the last month.

The bloodbath for technology shares came after it was reported that the US government is gearing up to investigate whether FANG companies misuse their massive market power.

The Federal Trade Commission and the Department of Justice, which enforce antitrust laws in the US, are understood to have divided oversight over the four companies, according to Reuters.

Amazon and Facebook will supposedly come under the watch of the FTC, and Apple and Google are poised to be looked at by the Justice Department.

The two federal agencies will then decide if they want to open formal investigations, it was reported.

A previous FTC investigation into Google was shut down in 2013 without major action against the company.

Teeuwe Mevissen, Rabobank senior macro strategist, said: “That (US investigation) is currently weighing on stocks, but more importantly the market is increasingly pricing in the risk of recession.

“Sentiment is significantly suppressed.”

Florian Hense, European economist at Berenberg, warned the impact on technology could reach Europe.

He said: “The United States is starting to cause more red tape on tech companies.

“This will affect all companies that do business with tech, and that will cause a ripple effect in Europe.”

US President Donald Trump has called for closer scrutiny of social media companies and Google, accusing them of suppressing conservative voices online.

President Trump has frequently taken aim at Amazon’s Chief Executive Jeff Bezos, who privately owns the Washington Post, a newspaper which often criticises the US leader.

He said: “The United States is starting to cause more red tape on tech companies.

“This will affect all companies that do business with tech, and that will cause a ripple effect in Europe.”

US President Donald Trump has called for closer scrutiny of social media companies and Google, accusing them of suppressing conservative voices online.

President Trump has frequently taken aim at Amazon’s Chief Executive Jeff Bezos, who privately owns the Washington Post, a newspaper which often criticises the US leader.

source: express.co.uk