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Which FAANG Stock Will Sit on the Iron Throne?

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Updated

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FAANG Still Matters

What the heck happened?    Year-to-date, FAANG stocks are straight up. Facebook is up 34%. Apple is up 25%.  Amazon is up 22%.  Netflix is up 37%.  And Google is up 16%.  Oh, and Game of Thrones starts its last season on Sunday.

What is our take? People have kind of stopped talking about FAANG – as if it were no longer cool.  (Like discussing tech stocks with a silly acronym was ever cool)  But I must point out that these stocks are still 13% of the S&P 500 and are crushing the index this year (again). So, who sits with Jon Snow and Daenyrus Targaryen on the throne in the long term? (See, now that is cool)  Apple? (AAPL) -2% rev growth and near a high in forward multiple: PASS.  Facebook? (FB) 24% revenue growth, but it’s a mess and WILL be regulated: MAYBE. Netflix? (NFLX) 28% revenue growth, but lots of competition coming: MAYBE. Google? (GOOGL) 21% revenue growth, but possible regulations, not too expensive: MAYBE. Amazon? (AMZN) 18% revenue growth seems like a low bar, still crushing competitors, accelerating EPS growth for 3 years: WINNER!  Year-to-date, FAANG stocks are straight up. Facebook is up 34%. Apple is up 25%.  Amazon is up 22%.  Netflix is up 37%.  And Google is up 16%.  Oh, and Game of Thrones starts its last season on Sunday.

What is the 411 on your 401K? Big part of the market, indices, and innovation drivers.  Will be a big deal for most portfolios.

Will this affect you personally? You certainly use all of these everyday.

Stocks to watch? FAANG and their collective effect on the market.

How big a deal is this? Pretty big for the overall market.

Song for this article? GOT theme song (phonetically) Daaadaaadadadadaaadadada (as per a Buzzfeed poll).

Bank Earnings’ First Up: Crimson Permanent Assurance

What the heck happened? OK fine this is from Monty Python’s The Meaning of Life.  BUT!  JP Morgan (JPM), Wells Fargo (WFC) and PNC do kick off earnings this week as the first banks to report.

What is our take?  Hmmm.  Let’s look at how banks make money.  Yields – the ten year has continued to fall this year, going from 2.7% to 2.5%.  Banking – UBS’s head at one point said this was the worst banking environment he had seen in 30 years.  Mortgages – for Jan/Feb, existing home sales were down about 5% with new home sales flat.  Trading volume – Nasdaq looks up about 2% for the quarter with the NYSE down 3%.  The one ray of light (that we can see from the outside) is refinancing, which had a real spike when rates plummeted for a few days.  So all in all…blah.  I am not saying these banks will miss numbers or crater.  They all set the bar low.  JP Morgan is expected to do 0% revenue growth this quarter.  All will depend the oh so reliable “green shoots” commentary.  The XLF is up 11.7% so far this year.

What is the 411 on your 401K? Probably some – financials are still 13% of the S&P 500 Index.

Will this affect you personally? Lower rates make us happy. 

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