FAANG Stocks Remain Bullish in March 2019
The year-to-date performance of the FAANG stocks is truly impressive given the dismal fourth quarter of 2018. All of the FAANGs – FB, AMZN, AAPL, NFLX, and GOOG – have continued to face their own unique challenges. But strong rallies since the beginning of the year in the overall stock market, and even more so in the technology sector, have provided a solid tailwind for these tech giants. As of the middle of March 2019, FAANG stocks as a whole remain significantly bullish.
What are FAANG Stocks?
If you’re not familiar with the FAANG acronym, it’s a variation of the term, FANG. FANG was coined by CNBC’s Jim Cramer. It originally stood for a handful of the largest and best-performing tech stocks: FB (Facebook), AMZN (Amazon), NFLX (Netflix), and GOOG (Alphabet). AAPL (Apple) was later added on (it’s unclear why it was excluded in the first place) to coin the new acronym, FAANG.
How are FAANG Stocks Doing This Year So Far?
While all five FAANG stocks are positive and doing very well year to date, some are doing significantly better than others. Here’s a breakdown of these stocks in descending order of year-to-date (YTD) performance. We include both their current prices and YTD performance numbers (as of the market close on 3/15/2019):
- Netflix (NFLX) | Price (as of the 3/15/2019 market close): $361.46 | YTD Performance (as of the 3/15/2019 market close): +35.04%
- Facebook (FB) | Price (as of the 3/15/2019 market close): $165.98 | YTD Performance (as of the 3/15/2019 market close): +26.62%
- Apple (AAPL) | Price (as of the 3/15/2019 market close): $186.12 | YTD Performance (as of the 3/15/2019 market close): +17.99%
- Alphabet (GOOG) | Price (as of the 3/15/2019 market close): $1184.46 | YTD Performance (as of the 3/15/2019 market close): +14.37%
- Amazon (AMZN) | Price (as of the 3/15/2019 market close): $1712.36 | YTD Performance (as of the 3/15/2019 market close): +14.01%
Since the last time we took a look at the FAANG stocks, in February, all of them have moved significantly higher, except for Facebook. Though FB is still the second best performer of the group year to date, the company has been struggling mightily of late.
Facebook Feeling the Heat
Just in the past week alone, Facebook was bombarded by a slew of bad news:
- The New York Times revealed that federal prosecutors have been investigating Facebook’s past deals with major tech companies that allowed those companies to gain “broad access to the personal information of hundreds of millions of its users.” Clearly, Facebook is having a tough time getting out from under the massive privacy issues that have been weighing heavily on its stock since last year.
- The company’s three biggest properties – Facebook, Instagram, and WhatsApp – all experienced intermittent outages last week that were initially rumored to have been caused by hackers. But Facebook quickly denied those rumors, blaming it instead on a “server configuration change.”
- Two key Facebook executives, including the company’s Chief Technology Officer, just jumped ship.
What May Be Next for the FAANGs?
Despite Facebook’s severe troubles, the FAANG stocks as a whole are doing exceptionally well this year so far. This is especially encouraging because Q4 2018 was so utterly horrendous for these stocks. As long as the overall market continues to stay afloat, the FAANG group, with the possible exception of Facebook, should be poised to remain on a bullish trajectory.
IMPORTANT: The information above should not be construed as investment advice and should not be considered as a solicitation to buy or sell securities. Past performance is not indicative of future results. Trading and investing in the financial markets involves substantial risk of loss, and may not be suitable for all investors.
Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.
Senior Technical Analyst at The Technicals
As a momentum stock trader, Luke focuses mostly on strong market moves. Luke has been trading the markets since the early 2000s, but still gets excited by big movers. Whether a surging large-cap tech company or meteoric penny stock, Luke tracks and trades winners. A technical analysis purist, Luke authors many of our Top Stocks & ETFs reports. Contact Luke