Dubai: The FAANG stocks, an acroymn for tech shares like Facebook, Apple, Amazon, Netflix and Google parent Alphabet, continued to add to losses for another session on Monday as investors questioned its growth prospects.

Facebook shares were down 3.09 per cent to $169.48, after losing 20 per cent on Thursday, the biggest daily fall for shares of any company in the US stock market history. Apple shares were down 0.52 per cent to $189.98. Amazon was down 1.80 per cent to $1,784.64. Netflix was down more than 4 per cent to $338.63. Google’s parent Alphabet shares were down 1.97 per cent to $1,228.27.

The Nasdaq Composite Index was down 0.8 per cent to 7,672.64, while the Dow Jones index was flat at 25,465.82.

“The disappointing guidance from these big tech firms followed poorly received results from Netflix in the previous week, leading to the question whether FAANG stocks can continue to drive equities higher in the coming quarters, or whether it’s time to reassess their current valuations,” Hussain Sayed, Chief Market Strategist at FXTM said.

Investors will closely watch the second quarter results from Apple on Tuesday.

Investor concerns were at their peak last week, when Facebook warned of a slower revenue growth after the company posted weaker than expected second quarter earnings.

Crowded trade

The long FAANG trade is the most crowded trade for sixth months, and since the long US dollar in 2015, according to Bank of America Merrill Lynch (BoAML).

“We cyclically advise contrarian bears to position for “peak profit, peak policy stimulus” theme via long gold, and short US tech companies ...,” Michael Hartnett, chief investment strategist at BoAML said in a note.

UBS also downgraded its buy rating on Facebook to neutral, and cut its price target to $180 from $212.

“In our opinion, the new growth drivers (Instagram, Watch, Stories, Messenger/WhatsApp, VR) frankly aren’t big enough over the short/medium term to alter the decelerating growth and margin pressure profile of the profit and loss,” Eric J. Sheridan and Alexandra Kasper, analysts at UBS said in a note.

More than $650 billion in market cap has been generated in 2018 alone by rallies in the FAANG group, an amount equal to the combined value of the 80 smallest firms in the S&P 500 Index, according to a report.