Roblox and Blizzard
Jim Simmons, Warren Buffett and Wall Street’s “big hand”investors bought shares of Roblox and Blizzard, which are considered emerging stock markets, last year. Since then, ironically, the stock price of Roblox, which had been doing well, has plummeted, and Blizzard’s stock price, which had been embroiled in various controversies, has been “dizzy.”. At first glance, it seems that Simmons was wrong and Buffett was right, but that’s not the point. The intention of this article is to look at what the “growth engine”is that penetrates emerging forces from FAANG, which led the IT era. The Scoop looked for the answer.
If you’re interested in the U.S. stock market, you’ve heard the word FAANG at least once. The word was coined after the bangs of Facebook (now Meta), Apple, Amazon, Netflix, and Google, and was used to call five companies that have led the IT industry for the past decade. The influence of these companies is so great that they refer to FAANG’s stock prices when they grasp the flow of the U.S. stock market in the stock market.
By the way, the stock price of FAANG is unusual these days. Meta’s share price, which was $338.54 on January 3 (local time), is now down 40.9% to $200.06 (March 4). It’s not just Meta. During the same period, shares of Apple (-10.3%), Amazon (-14.5%), Netflix (-39.4%), and Google (-9.0%) also fell. It is for this reason that there has recently been talk of “FAANG is not the same as it used to be.”.
The industry cites the “lack of growth expectations”as the biggest reason for these companies’ stock prices to begin to falter. Meta said in a report in the fourth quarter of last year that the number of Facebook’s daily active users (the number of net users using the service during the day) was 1.929 billion. This is down one million from the third quarter of the same year (1.93 billion users).
Compared to the entire DAU, the “reduction rate”is just a drop in blood, but investors seem to have looked at it sensitively. Shortly after Meta announced its fourth-quarter earnings on Feb. 3, 2021, its stock price hit $237.76, down 26.3 percent from the previous day ($323.00).
The same goes for Netflix. In its fourth-quarter earnings report last year, the number of new subscribers was 8.28 million, down 110,000 from Wall Street’s estimate of 8.39 million. Like Facebook, 110,000 people are insignificant, but the stock price plummeted from $508.25 (January 20) to $397.50 (January 21). Apple, Amazon, and Google are still maintaining growth in their respective fields, but industry experts say that they do not have the same expectations as before.
As FAANG shrinks, investors are paying attention to the “emerging forces”that follow these companies. I am especially interested in Metabus, NFT (No Impossible Token), and online games. These stocks are expected to become growth stocks like FAANG.