The Investor Channel: FAANG Stocks Rocket Higher
Tech stocks led the market higher in 2023 and 2024. In 2025, they’ve led the market lower. That’s typical of market selloffs. The big winners on the way up become the big losers on the way down.
But with markets now posting some up days recently, it may look like some of the risk in the tech stocks is over. And that it may be a time for investors to find a bargain amid the selloff.
In just a few trading days, many of the big-name tech stocks have led to 10% selloffs in many big names. But subsequent rallies have allowed for a sharp rebound.
What’s hitting the tech stocks hard? Most technology companies offer a service, which has been immune from tariff fears so far.
However, a change in regulatory issues could mean more rulings. European regulators have been hitting tech giants like Microsoft (MSFT) and Google (GOOG) with hefty fines in recent years. For now, it’s been treated like a cost of business.
However, tech manufacturer Apple (AAPL) has swung wildly on tariff news. It’s even had a specific, if temporary, carveout from tariffs to avoid a massive supply chain issue.
Mag 7 player Tesla Motors (TSLA) is also heavy on manufacturing. But its U.S. sales all come from manufacturing in the U.S. Demand for Tesla cars is shifting, however. And in China, the rise of cheaper EV companies could eat at Tesla’s margins.
In short, the tech space is shifting, and these companies may not be the obvious runaway winners as in years past.
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