FAANG Drives U.S. Tech Stocks to New High

  • The total market value of FAANG surged by over $630 billion overnight.
  • Alibaba’s US stocks hit a new high.
  • Nasdaq index closed up 0.64%.

US technology stocks exploded, helping the Nasdaq become the only rising stock index among the three major US stock indexes. The US’ large technology stock portfolio FAANG (Facebook, Apple, Amazon, Netflix, Google) collectively rose intraday to a market value of total new 940.68 Yi dollars.

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That’s according to the latest US dollar against the RMB exchange rate. Among the Chinese concept stocks, Alibaba hit a record closing high of $317.15, and the latest total market value reached $850.8 billion.

Analysts pointed out that the number of new coronavirus cases in Europe and the United States remains high, the hope that a new round of US fiscal stimulus plan will be introduced before the general election is slim, and the high volatility of US stocks will continue.

“FAANG” Collectively Rose

On October 27, the three major U.S. stock indexes diverged. The Dow Jones Industrial Average and the S&P 500 oscillated lower, closing down 0.80% and 0.30% respectively. Nasdaq closed up 0.64%. Analysts said the Nasdaq closed gains due to the general rise of US technology stocks.

According to data, the large US technology stock portfolio “FAANG” closed up collectively, with a total increase of $94.068 billion in market value during the day. Among them, Apple’s latest total market value reached $1.99 trillion, once again approaching $2 trillion.

On the news, the third quarterly report of “FAANG” will be released this week. FactSet data show that analysts estimate that this year’s science and technology enterprise profits in the S&P 500 index of all corporate profits in the share is expected to reach 36%.

Alison Porter, portfolio manager of Janus Henderson Investors, who focuses on investing in the technology industry, said:

“We are destined to have a digital lifestyle, so I remain confident in large technology companies because they are forced to stay at home during the epidemic.”

However, some analysts pointed out that although technology stocks are still worth investing from the perspective of growth and valuation, tightening regulations may further increase the volatility of technology stocks in the coming weeks.

Alibaba’s Record High of Closing Prices

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On October 27, most of the U.S. stocks’ concept stocks rose, and Alibaba even hit a record closing high. Analysts pointed out that two factors helped Alibaba’s US stocks hit a record closing high.

First of all, the preliminary inquiry announcement issued by the Shanghai Stock Exchange recently showed that Ant Group, the A-share issue price is determined to be 68.8 yuan per share, with a total market value of 2.1 trillion yuan.

Alibaba announced that after this issuance, Alibaba expects to hold approximately 31.8% of Ant Group ‘s equity, or 31.2% of the equity (if the underwriter fully exercises the option to subscribe for additional shares under the issuance of A shares and H shares).

Secondly, as “Double Eleven” approaches, Alibaba, as an Internet e-commerce giant, will usher in positive stimuli. In addition, NIO soaring 9.42%, the latest total market value reached $38.4 billion.

According to market sources, many industry sources revealed that Weilai is planning to independently develop autonomous driving computing chips. At present, the project is in its early stage and is yet to be discussed by the board.

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Joyce Davis

My history goes back to 2002 and I  worked as a reporter, interviewer, news editor, copy editor, managing editor, newsletter founder, almanac profiler, and news radio broadcaster.

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