Big Reversal In The FANG Stocks

Posted on | by Todd | Leave a Comment on Big Reversal In The FANG Stocks

Shares of Facebook, Amazon, Netflix and Google (also known as the FANG stocks) all fell over 3% today as investors pulled money out of the overheated US Tech sector.

The FANG stocks have been market leaders all year and have accounted for over 40% of the NASDAQ gains year-to-date. On a valuation basis, these names have added over $600 billion to the S&P 500 even though they only make up 13% of the index.

Many analysts have been expecting a pullback in the tech sector as P/E ratios and forward guidance data have approached the levels last seen prior to the 2000 and 2008 market corrections.

It’s worth noting as a point of reference that Microsoft, which is not a FANG stock, fell 62% after the 2000 tech bubble burst and dropped 45.5% during the financial crisis in 2008.

Even after today’s sharp decline, the S&P tech sector is still up over 18% for the year.

US Big-5 Worth Close To $3 Trillion

Posted on | by Todd | Leave a Comment on US Big-5 Worth Close To $3 Trillion

Since the US election in November, the 5 biggest stocks on the NASDAQ: Amazon, Apple, Facebook, Google and Microsoft have gained an extraordinary $675 billion in market capitalization.

This move higher pushes their collective valuations to close to $3 trillion, or over 10% of the entire US market.

To put this into a global context, that’s more than the total value of stocks in any single equity market worldwide except the UK, China, Japan, Hong Kong and the USA.

US Earnings – Microsoft Corp

Posted on | by Leon Hinde | Leave a Comment on US Earnings – Microsoft Corp

Shares of Microsoft have jumped over 5.5% higher in after hours trade to post a new all-time high of $60.60 on strong earnings results.

The software giant posted adjusted earnings of 76 cents per share on revenue of $22.33 billion, which eclipsed analysts’ forecasts of 68 cents per share on revenue of $21.71 billion. The $22.33 billion in adjusted revenue is 2.3% higher than the same period in 2015.

Microsoft’s major intelligent cloud division, Azure, brought in $6.38 billion which underscores the firm’s ability to become a major beneficiary of the commercial shift to cloud and digital storage.

MSFT Daily
MSFT Daily Chart