FAANG Under Fire: Is the Growth Stock Sell-Off Nearing an End? Here’s the Forecast…

With the market sell-off recently, many are concerned about the large cap growth stocks and the “FAANG” stocks. These stocks, (Facebook, Amazon, Apple, Netflix and Google) are classified by most as “growth”stocks.

Growth stocks are companies that are known for rapid investment and innovation and are expected to increase sales and earnings faster than the market.

The chart below is a glimpse into the forecast for the natural rotation that occurs between growth stocks and value stocks (“value” stocks being companies like Proctor and Gamble, Johnson & Johnson, etc…).

The black line is the ratio between growth and value stocks. As the line rises, Wall Street is allocating funds toward growth stocks. As the line declines, it indicates Wall Street is favoring value stocks.

Beginning in early December, Wall Street was quietly rotating toward value. This rotation accelerated beginning in February.

The EquiPredict forecast included here is pointing to a reprieve in the growth stock sell-off going into May. From there, expect a rotation back toward value into the summer.

For the full Growth vs. Value forecast for 2025 which includes 3 charts, visit the EquiPredict subscriber area or see the subscription information page. Subscribers have access to this full forecast as well as all prior EquiPredict subscriber content.