This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
Otherwise, enjoy the column!
Subscribe to the Monster Stock Market Commentary to get the Weekly Monster Market Commentary and join the 3,339 subscribers getting it for FREE!
The FANG Stocks Are Melting as The End of Days Approach, Again!
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF GOOGL, NFLX, TSLA
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. 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. My bad.
Maybe the world isn’t coming to an end, and maybe, just maybe, the sun will even rise tomorrow.
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. 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. 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 ridiculous valuation, I’d be more concerned, but it is trading at roughly 20 times next years earnings, and it is expected to see earnings growth of about 14 percent. McDonald’s trades at 19 times 2019 earnings, and it is only growing at 7 percent. If Facebook is ridiculously valued, then what is McDonald’s?
Technically Facebook found strong support at $166 and bounced.
Netflix is back to support at $333, which is strong technical support, so let’s hope that continues to hold.
Amazon is also nearing support at $1761.
Meanwhile, Alphabet is filling the gap.
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. What you do think?
Mott Capital Management, LLC 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. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.
#fang #facebook #netflix #amazon #alphabet #tesla