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FAANG After the Fall

FANG stocks are in a rut right now, and the question I have is will they rally back?

The answer? Some will and some won’t.

Some of the profit estimates for these FAANG stocks — Facebook (FB), Apple (AAPL), Adobe (ADBE), Amazon (AMZN), Netflix (NFLX) and Alphabet (GOOGL) — are poor. I mean bad.

These companies used to deliver 20% to 35% profit growth or better. Now some of them are expecting around 10% growth next year.

Ten percent isn’t enough to light a fire under a growth stock, which means some of these names might spend the next 6-12 months around their current levels, and those levels are around their 52-week lows.

But not all is bad. Adobe, Amazon and Netflix look especially good here. The other names will have to beat expectations to get back to growing profits above 20% in 2019.

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