Is Big Tech stocks' super power a myth?
Stocks similarly powered by size and growth factors can match or outperform them: Study
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Apple CEO Tim Cook unveiling the new iPad mini in September. According to the study, the intrinsic magic of the Faang label – which includes Apple, Netflix and the company formerly called Facebook – has little to do with their “standout” performance.
(BLOOMBERG) Many Wall Street careers have been built touting the exceptional capacity of Big Tech stocks, including Amazon.com and Alphabet, to outrun everything else in the market.
Yet a recent study from the Singapore Management University argues that the super power of the Faang cohort is exaggerated. The bulk of their gains since 2013 came thanks to a broader market appetite for large companies and those with strong earnings growth, according to associate professor of finance Roger K. Loh who studied how investment factors influence returns.
