Facebook is self explanatory. Their focus on VR and metaverse lasted a good Christmas holiday but has since flown way back down to earth with the new users in platforms such as FB and IG down significantly from their growth stage… and no just bc you “check IG every day” is not a reason to own a stock.
Apple is fine, Amazon…. is iffy but I still overall in general like them for their diversification.
Netflix is clearly dead. Projecting to lose 2 million new subscribers next quarter, going lower from 200K this quarter. If the war in Ukraine continues to go on, those numbers will be even worse.
Google is fine.
But overall, the “Own FAANG and prosper” at least for THIS YEAR is just not going to be it folks. Sorry to say. The play this year is in commodities, energy, and utilities as well as safety stocks (REIT's, Healthcare, snacks and supermarkets etc) which all scream a bear market historically.
FAANG stocks do well when the market is not handicapped by the FED, inflation and a looming (but doubtful) recession that has Biden and his team terrified of the midterms. Make no mistake, Powell will do what looks “appropriate” politically in order to appease his boss.
I'm still long Apple, Google, Amazon but “FAANG” is gone. I'm sure people will argue with me on Facebook/Meta just like last quarter… but like I said last quarter, and like I said this quarter on Netflix as well (where many people disagreed) this is just not the year.
Trends stay the same, continue to ride what has been working in this market THIS YEAR not from 2020.
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