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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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.

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A version of this article appeared in the print edition of The Sunday Times on December 12, 2021, with the headline Is Big Tech stocks' super power a myth?. Subscribe