FANG takes Wall St on a bumpy ride
Reuters reported on Wall St's wild day yesterday with Facebook shares suffering the biggest one-day wipeout in US stock market history following executives forecasting years of lower profit margins. Facebook shares closed almost 19% down at $176.26, wiping more than $120 billion off the company's value. However, Wall St found relief after Amazon.com's quarterly results beat estimates, sending the online retailer’s stock to a record high and alleviating fears of deepening troubles across the FANG group (Facebook, Amazon, Netflix, and Google). Amazon said it expects an operating profit between $1.4 billion and $2.4 billion, up from $347 million a year earlier. Analysts were expecting around $843 million.