Home ยป The FANG Stocks Are Melting as The End of Days Approach, Again!

The FANG Stocks Are Melting as The End of Days Approach, Again!

The FANG Stocks Are Melting as The End of Days Approach, Again!

Subscribe to The Free Market Chronicle and join the 2,722 subscribers getting it for FREE!

The FANG Stocks Are Melting as The End of Days Approach, Again!

[widget id=”text-19″]

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF GOOGL, NFLX, TSLA

[widget id=”text-23″]

Stocks have been walloped for the past couple of days, and it feels as though the world may once again be coming to an end.ย  But believe it or not, the S&P 500 is only 1.5 percent over the past 5 days from its highs. The NASDAQ is down worse about 3.8 percent. Is it the end of the world coming?

Man, not only that I saw a black swan is that like a bad sign? Oh wait, turns out it was just a baby swan.ย  My bad.

Maybe the world isn’t coming to an end, and maybe, justย maybe, the sun will even rise tomorrow.

FACEBOOK

If I told you beforehand that Netflix and Facebook were both down by over 20 percent in the past month, you probably think that the NASDAQ and the S&P would be down far more than they presently are.ย  Amazon and Alphabet are down about 4 percent each.

But despite the recent declines, Netflix is still up 75 percent on the year, Amazon is up 53 percent, Alphabet is up 17 percent, and Facebook is down just 3 percent.ย  When you view the recent rout from that perspective you are probably saying to yourself either: so what the big deal? Or what you want, they’re taking a breather. Of the 4 FANG only Facebook at this point seems probalmatic. If the stock were trading at some ridiculousย valuation, I’d be more concerned, but it is trading at roughlyย 20 times next years earnings, and it is expected to see earnings growth of about 14 percent.ย  McDonald’s trades at 19 times 2019 earnings, and it is only growing at 7 percent.ย  If Facebook is ridiculously valued, then what is McDonald’s?

Technically Facebook found strong support at $166 and bounced.

facebook

[widget id=”text-22″]

NETFLIX

Netflix is back to support at $333, which is strong technical support, so let’s hope that continues to hold.

netflix

AMAZON

Amazon is also nearing support at $1761.

amzn

ALPHABET

Meanwhile, Alphabet is filling the gap.

googl

TESLA

If you are Tesla investors and you look at the chart below you got to say to yourself, well things are about to get a lot better or a whole worse. But that chart appears to be a rising triangle, a very very long-term rising triangle and looks bullish to me. Maybe I’m crazy, or perhaps I’m biased.ย  What you do think?

tesla

[poll id=”6″]

Until Tomorrow

-Mike

[widget id=”text-28″]

Mott Capital Management, LLCย is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.ย Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.ย 

#fang #facebook #netflix #amazon #alphabet #tesla