The so-called FANG group of stocks (FB, AMZN, NFLX, GOOGL) fell for the fifth day yesterday - the longest losing streak since right after the election.
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Worst 5-day drop in almost 4 months, sliding back to 3-week lows...
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NFLX is the biggest loser in the last 5 days (down 5%) and while TSLA is not in the FANGs, it has been panned in recent days too...
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As analysts cut expectations for the big tech firms ahead of earnings...
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The problem is, analysts are cutting their estimates, calling into question their stock valuations. At an average 74 times earnings, the multiple is three times that of the S&P 500.
“There has to be a bit of reality that they just can’t keep running further and further,” Bill Schultz, who oversees $1.2 billion as chief investment officer of McQueen, Ball & Associates Inc., said by phone.
“We’ve built in a very good scenario for them, so if it’s just plain good, they’re being punished.”
"no brainer"
And it's not just high-beta big tech, Biotechs are stumbling hard too - down 6% from recent highs and down 6 days in a row...
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