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What's the Beef with: FAANG stock analysis

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FAANG Stocks

FAANG stocks

Probably the most popular and important investing acronym to be aware of this century, the “FAANG” index has gripped the imagination of a generation. The FAANG stocks – Facebook, Amazon, Apple, Netflix and Google (holding company now being Alphabet Inc.).

These giants of the tech world have dominated money manager portfolios for some time now and as of March 2019 the total market capitalization of these 5 tech companies equalled $3.1 Trillion.

Whether you invest into each stock separately or as a group through an ETF the “five” as they are commonly known should be part of any value investor investors portfolio who is not risk averse without a doubt.

FAANG - image

The term “FANG” was created and popularized by the one and only Jim Cramer from CNBC’s Mad Money in 2013. The original group did not include Apple Inc from the start and was only added later to the original group.

Since the original “FANG” we have seen Apple added as well as other notable tech companies like Alibaba (BABA), Baidu (BIDU), Nvidia (NVDA), Tesla (TSLA) and Twitter (TWTR) known as the NYSE FANG+ index.

Chart Life:

All these tech stocks trade on the NASDAQ, which measures over 3000 tech and growth stocks. The Nasdaq 100 (NDX) (Blue line) below has been outperformed by some of the individual “FAANG” tech stocks YTD.

FAANG Stock - chart

Looking closer at the NYSE FANG+ index below we might expect the price action to rise to the upper band of the channel (green dotted) until the Relative Strength Index (RSI) reaches overbought levels. Notable technical levels to watch on the FANG + would be the 2833 resistance and the 2350 technical support level.

These Technical levels coupled with Fundamentals will be watched closely as the earnings season approaches which is a huge contributing factor to each tech stocks outlook.

FANG + chart

 

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Sources - PCR, Bloomberg, KOYFIN, Investopedia, and Wikipedia

 

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Barry is a market analyst with GT247.com, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table

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