Old FANG-ful: FB, AMZN, NFLX, GOOGL
Tim Knight | Jun 17, 2018 01:14AM ET
If you need any indication of just how dull and un-bear-ish this market has become, look no farther than our friends at ZH. During market mayhem, they have an absolute ball dissecting it. When markets basically go up 1% a day without fail, they turn their attention to any other bad news they can find and stick to it for a while. Years ago, it was the Fukushima nuclear reactor. These days it’s Tesla (NASDAQ:TSLA) cars that are crashing or bursting into flames. When the market isn’t blowing up, something else always is.
For myself, I can’t really get interested in writing articles about the cars of minor celebrities bursting into flames, so I’ll just turn my attention to the most important driver of global equity markets, which is FANG. Some people say FAANG, so as to include Apple (NASDAQ:AAPL), but, meh, I’ll keep it to four – – plus a bonus mention of another stock.
We begin with Facebook (NASDAQ:FB), which managed on Thursday to push to a lifetime high, having utterly recovered from its embarrassing privacy scandal earlier this year (and I must say again, published reports about 10% of Facebook’s user base terminating their accounts in protest was simply irresponsible journalism).
The letter “A” is Amazon (NASDAQ:AMZN), of course, which has made zillions of millionaires and a few billionaires. Who knew an humble online bookseller could become one of the biggest companies on the planet?
Netflix (NASDAQ:NFLX), like Amazon, has escaped the surly bonds of earth. You can note with both Amazon (above) and Netflix (below) the tinted area where it reached escape velocity from its multi-year channel. In other words, these channels confined where prices were “supposed” to be contained.
Get The News You Want
And, lastly, with a P/E of 50, by far the most conservative and blue chip of the group, Google (NASDAQ:GOOGL). Who ever would have thought Google would be the same kind of staid, reliable investment that IBM (NYSE:IBM) was back in the 1960s?
Not to say that the run-ups in these issues have left them as anything but absolutely bargains, however.
Speaking of Netflix, one relatively new stock that has received a staggering amount of attention is IQ, shown below. This is the Greater Fool Theory par excellence, as millennials keep trading this back and forth at ever-ascending prices. As you can plainly see, that strategy has worked great so far.
And if you’re wondering what all the fuss about, here it is. It’s Chinese Netflix. That’s it.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.