Yesterday, we discussed how hot Chinese tech stocks are. In fact, with incredible 71.3% year-to-date returns, they’re currently beating America’s FANG stocks, which have only returned 36.6% year-to-date. The questions we want to answer in today’s blog are: What’s going on with the FANG stocks these days? Are they still worth our money?
To recap, the folks at Bespoke recently issued a report revealing the S&P China ETF (GXC) is up 37.8% year-to-date, while the Nasdaq 100 ETF (QQQ) is up only 22.2%. At the same time, the major Chinese technology companies are up an incredible 71.3% year-to-date, while America’s FANG stocks–Facebook (FB), Amazon.com (AMZN), Netflix (NFLX) and Alphabet (GOOGL)–are only up 36.6%.
Yesterday, we discussed a few factors about why Chinese tech companies are outperforming the broader market right now. Today, we’ll take a closer look to see if the FANG stocks still have any bite left to them.
Personally, I believe strongly in three out of the four FANG stocks.
For starters, Facebook has brought in a better than 48% year-to-date return. In fact, it brought my Blue Chip Growth members a whopping 151% return already this year. Adding to that impressive run, FB still maintains an A-rating in my Portfolio Grader tool.
Furthermore, Amazon is up 31% year-to-date. Last quarter, it brought in $38 billion in net sales, a 25% increase over the year ago quarter, and the company hosted its third annual Prime Day in July, which was the largest ever shopping event in Amazon’s history. Plus, AMZN is still on my Blue Chip Growth Buy List, bringing my members a better than 39% return in little more than a year. Add to that its consistent Buy-rating in Portfolio Grader, and I don’t see how investors could have many complaints about this stock.
Netflix reported that it added 5.2 million subscribers during the second quarter, which walloped analysts’ consensus estimate for 3.23 million subscribers. In fact, with a solid Buy rating in Portfolio Grader, I just added NFLX to my high-octane Ultimate Growth Buy List this past May.
Finally, we come to GOOGL. This is the laggard in the FANG group. While I have positive faith in the first three FANG companies, GOOGL is a Hold in my Portfolio Grader tool. In fact, it currently has a D-rating in 5 out of 8 Fundamentals.
So, the results are in. It looks like we could still get some bite out of three of the FANG companies, while GOOGL is bringing the group as a whole down. Stay tuned in right here to this blog in the days and weeks to come to discover even more answers to your investing questions.