FANG Stocks: Is Now The Time To Take A Bite?
Leverate Technological Trading Ltd | Jul 16, 2018 03:30AM ET
Ask a person in the street what the top tech stocks might be, then most likely you’ll hear Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), and Alphabet Inc Class C (NASDAQ:GOOG). Many would be surprised to hear that Netflix (NASDAQ:NFLX) is way up there among the big boys. Put them in a group together, and this elite union is known collectively as the FANG stocks. With their impressive market performance, you’re probably asking: is now the time to buy?
FANG, or FAANG (if you also include Apple (NASDAQ:AAPL) in the bite) stocks are riding high. On top of bullish US stock market sentiment, these tech stocks are leading the charge, and it does indeed look like there is more good news to come.
Facebook rallied over 50% in 2017 but has shown somewhat lackluster performance over the past three quarters. This comes as no real surprise as the general direction of the market has been sideways due to the concern over rising interest rates. However, since a blip in March 2018, where Facebook fell 30 USD, the stock has pushed higher and is currently valued at 207 USD per share.
Amazon traded at a record high on Friday 13th of July, 2018, with a target price of 2100 well within reach. Amazon’s traditional online retail business is further bolstered by its success in the cloud computing field. In addition, Amazon plans to launch yet another annual Prime Day on Monday, July 16th, its fourth in this successful marketing campaign, which is likely to fortify their market position even further.
Apple is often slipped in there as the second “A” in FAANG, and understandably so. The stock has doubled in value in two years, and there’s no sign that the Apple train is running out of steam. Still outperforming the Nasdaq composite, Apple continues to rise
Netflix has shown remarkable growth with its stock price almost quadrupling in two years. While facing competition from the likes of Hulu and YouTube, the streaming movie/TV station has secured pole position in this fertile market sector. Netflix’s strong global expansion has clearly contributed to the company’s success, and its stock price seems destined for further gains.
Google (GOOGL ), now more frequently identified by its parent organization Alphabet (NASDAQ:GOOGL) (that’s really going to mess up the FAANG anagram), is also rising well in the stock charts. Almost doubling in value since April 2016, Google stock continues to attain new highs, which is a strong technical indicator of more strength to come. Alphabet’s profits grew by almost 30% in 2017, as revenues passed the significant 100 billion USD mark, and revenue numbers have consistently shown growth in excess of 20% for the past eight quarters.
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Each of the FAANG stocks looks set for higher, unchartered territory, and with the general market mood looking decidedly bullish, these stocks would appear to be a safe bet. The NASDAQ (NASDAQ ) has shown strong growth since President Trump took his seat in the White House in 2016, and with the exception of a few sticky months at the start of 2018, the index is pushing north. Combining the general market sentiment with the continued positive sounds coming out of the FAANG companies, then if these stocks do not already form a significant portion of your stock portfolio, now is probably as good a time as ever to snap them up.
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