Remember FANG stocks? Three members of this elite club may be flirting with breakouts before some big events.
Netflix (NFLX), Facebook (FB) and Amazon.com (AMZN) are less than 1 percent from their highs for the year. The trio has quietly outperformed the broader market in the last month as they approach the top of important trading ranges.
AMZN’s event is “Prime Day” next Monday and Tuesday, July 15 and 16. The invented holiday lures shoppers to a free month of the Prime service with an array of discounts and exclusive products. Last year, it generated record sales. This year, Prime Day will be 12 hours longer.
To top it off, quarterly results come the following week. (AMZN hasn’t officially provided the timing yet.)
Speaking of earnings, NFLX reports its numbers after the bell next Wednesday, July 17. The streaming-video giant led the selloff in growth stocks last year as subscriber gains slowed. It came roaring back in January on news about price increases but has been trapped in a channel ever since.
Meanwhile, investors have focused on the competitors like Walt Disney (DIS) and Roku (ROKU). Both of those rivals hit new all-time highs within the last month.
What’s FANG?
In case you don’t know the abbreviation, “FANG” stands for a group of the most prominent large technology stocks: FB, AMZN, NFLX and Alphabet (GOOGL). Sometimes it includes Apple (AAPL) and Nvidia (NVDA).
While FANG stocks led the market to new highs in 2018, none has managed to break out this year. But now that they’ve lagged for a while, will investors get interested again?
FB, the last name on today’s list, has a confirmed earnings date of July 24. Investors want to see the social-media giant finding new ways to monetize its huge user base. So far that’s entailed the rollout of Stories, along with greater use of Messenger and Instagram. The other big story is Project Libra, a cryptocurrency initiative with the potential to make FB a major player in electronic payments.
In conclusion, attention has recently focused on macro issues like the Federal Reserve and trade wars with China. But important events are approaching for some of the market’s biggest companies. That could draw interest back to the fundamentals in these key names.
David Russell is VP of Market Intelligence at TradeStation Group. Drawing on two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial.
Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.
Money is flowing back into stocks as investors hope for a better inflation report this week. The S&P 500 rose 1.9 percent between Friday, May 3, and Friday, May 10. It was the third straight positive week. More than four-fifths of the index's members advanced,...
Oracle jumped to new highs almost two months ago. Now, after a pullback, the software giant may have found support. The first pattern on today’s chart is the gap higher on March 12 after earnings surprised to the upside. ORCL retraced the move and is starting to...
Most of the big earnings reports have now occurred, and so far they've done little to boost the market. Companies like Microsoft (MSFT), Meta Platforms (META), Netflix (NFLX), Caterpillar (CAT) and Intel (INTC) reported profits above Wall Street estimates. However...
Leaving TradeStation
You are leaving TradeStation.com for another company’s website. Click the button below to acknowledge that you understand that you are leaving TradeStation.com.
This event is hosted on YouCanTrade. The information for this event is being provided for informational and educational purposes only.
You are leaving TradeStation Securities and going to YouCanTrade. YouCanTrade is an online media publication service which provides investment educational content, ideas and demonstrations, and does not provide investment or trading advice, research or recommendations. YouCanTrade is not a licensed financial services company or investment adviser and does not offer brokerage services of any kind.
TradeStation Securities, Inc. provides support and training channels hosted on YouCanTrade, its affiliate. Other than these support and training channels, any services offered by YouCanTrade are not sponsored, endorsed, sold or promoted by TradeStation Securities and it makes no representation regarding any YouCanTrade goods or services.
To acknowledge you are leaving TradeStation Securities to go to YouCanTrade, please click
This website uses cookies to offer a better browsing experience and to collect usage information. By browsing this site with cookies enabled or by clicking on the "ACCEPT COOKIES" button you accept our Cookies Policy. To block, delete or manage cookies, please visit your browser settings. Restricting cookies will prevent you benefiting from some of the functionality of our website.ACCEPT COOKIES