Published on May 8th, 2019 | by admin0
FAANG Stocks Surprise on the Upside in Q1 2019
The first quarter of 2019 had been a huge surprise in terms of stock performance for FAANG. Big tech companies managed to rebound sharply from the lows, after the bloodbath seen in Q4 2018.
Facebook recovers after 2018 bear market
Although few people had any positive expectancy from the FB stock, the company managed to rebound impulsively as the other major stocks. The trouble for Facebook started earlier, since 25th of July, following an earnings report which disappointed. However, on January 2nd this year, the stock was trading at $129 and at the time of writing it closed at $179.60. A positive earnings beat on January 30th further fueled the rally and now investors are eager to see the new earnings report due on April 24th.
Apple – a service company?
Apple’s quest to switch from a basic smartphone maker to a services company continues and the market ‘s confidence in the stock gained traction in 2019, as it jumped from $142 to the current $199.2 level. Still, iPhone sales are responsible for a big portion of Apple earnings, which means the earnings report due on April 30th will be a “make it or break it” event for the stock. Weakening numbers might mean that the rally will pause for a few months.
Amazon and consumer sentiment
Despite the personal problems of Jeff Bezos, Amazon had managed to recover from the lows, starting the year at $1,464 and currently trading at $1,844. Consumer sentiment in the US, as well as the rest of the world, had been weakening, which means the earnings report scheduled for April 25th, as well as the projected returns for the following months, could act as a turning force for the stock price.
Netflix in trouble?
Out of all the FAANG stocks, Netflix seems to be the most vulnerable, after Apple and Disney announced they will enter the video streaming industry. Disney already announced it will charge $6.99 per month, which might convince a significant number of Netflix users to switch their choice. The NFLX stock started 2019 at $260 and currently sits at $348 after a few days of selling.
Google silently headed to record highs
Although the company faces some serious challenges in Europe due to its data security practices, Google shares at trade.com do not show any significant sign of weakness. The stock started the year at $1,024 and currently sits at $1,226, about $65 below its record high. As well as with the other stocks, the earnings report due on April 29th could be a game changer or further amplify the rally.