Cumulative return for FAANG stocks in 2018

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by gorillaz0e

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FANG got wrecked this year – so far.

Facebook, Amazon, Netflix, and Google parent Alphabet plummeted during 2018, compounding weakness that has plagued the broader tech space.

At least one of those names could have hit a bottom, according to Matt Maley, equity strategist at Miller Tabak.

“The stock that I think could be compelling down here is Facebook,” Maley said on CNBC’s “Trading Nation” on Thursday. “It’s not a crowded trade any more. It’s been washed out.”

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Facebook is the only stock of the group negative for the year. It has dropped 10 percent in 2018, the bulk of those losses sustained after its notorious $120 billion drop in market cap in late July after its worrisome second-quarter earnings statement.

While Maley says the fundamentals in other FANG stocks might be more constructive, their steep run-up means they’re more vulnerable to a pullback than Facebook.

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“If the market begins to roll over, you’re actually going to see the Googles and the Netflixes, some of that fast money, the momentum money, start to sell in a little bit of a panic move, but that money has already disappeared from Facebook,” said Maley.

Do you think the sell-off is over in the FANNG stocks?

Are you personally buying FAANG stocks at these current prices?


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