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Have the FAANG Stocks Lost Their Luster?

Tracey Ryniec

There are over 600 companies reporting this week, including over 30% of the S&P 500.

Included in that group is most of the FAANG names, including Facebook, Amazon and Alphabet.

But some of the FAANG Jr stocks, such as Twitter and Snap, will also be reporting.

As a group, FAANG and the social media stocks aren’t exactly known for their stellar earnings beat records. Investors have shrugged off misses by Alphabet and Amazon for years though.

And while the stocks have mostly rebounded off of late 2018 lows, most haven’t broken out to new highs as others have in more mundane industries like railroads and the industrials.

What’s that about? Have the FAANG stocks lost their luster?

Or is this just a pause before the breakout resumes?

The FAANG and FAANG Junior Stocks to Watch This Week

1.    Twitter TWTR has a great earnings track record. It hasn’t missed since 2015. While shares are down off their 2018 highs, the shares didn’t see as big of a sell off in the December doom as other social media names. Are these shares undervalued?

2.    Snap SNAP was left for dead in the December 2018 doom as shares hit a post 2017 IPO low. But they’ve really rallied from there, up 109% year-to-date. Is there anything still left in the tank?

3.    Facebook FB has only missed once since 2016. With the bad publicity hurting shares in 2018, it finally bounced off the December lows and is up 38% year-to-date. Is the worst behind the company?

4.    Amazon AMZN has beat on earnings 6 quarters in a row. For a company that doesn’t care about the miss/beat, that is impressive. Shares are up 22% year-to-date but is a breakout still to come?

5.       Alphabet GOOGL has strung together 4 beats in a row. Out of all of the FAANG stocks, Alphabet has the worst earnings surprise track record. But is it showing a new leaf with all of these beats? 

[In full disclosure, the author of this article owns shares of FB, AMZN and GOOGL in her personal portfolio.]

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Facebook, Inc. (FB) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
Twitter, Inc. (TWTR) : Free Stock Analysis Report
 
Snap Inc. (SNAP) : Free Stock Analysis Report
 
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