FAANG Stocks: Facebook and Amazon Hit New Highs, Apple and Google Below Their Potential

UTC by Daria Rud · 4 min read
FAANG Stocks: Facebook and Amazon Hit New Highs, Apple and Google Below Their Potential
Photo: Depositphotos

In March, when the coronavirus pandemic was most widely unwrapping, some experts said it was time to buy FAANG stocks. And as we see now, they were right.

Last week, FAANG stocks showed a great performance. Facebook Inc (NASDAQ: FB), Amazon.com Inc (NASDAQ: AMZN), Apple Inc (NASDAQ: AAPL), Netflix Inc (NASDAQ: NFLX), and Google LLC (NASDAQ: GOOGL) (NASDAQ: GOOG) have withstood the coronavirus crisis, with some of them making a real breakout.

Facebook’s Breakthrough

Last Tuesday, Facebook rose above $220, following the company’s launch of Facebook Shops – a platform to make selling easier for small businesses and help them fetch their second wind after the coronavirus crisis. On Friday, the Facebook (FB) stock hit a new all-time highest closing price of $234.91.

Todd Gordon, managing director at Ascent Wealth Partners, said:

“The Facebook break is pretty spectacular. It’s been a long consolidation – as you pull up that first weekly chart, it’s just a beautiful trending parallel channel. … This $220 break was very, very impressive.”

Facebook’s diversifying its business drives FB shares to grow, despite coronavirus negatively affecting most traditional stock markets. But it still has to come out with its Libra, a stable currency on a reliable and secure open-source blockchain, supported by a reserve of actual assets.

In the pre-market today, the Facebook stock is 2.17% up, $240.00 per share.

Other Big Winners among FAANG Stocks: Amazon and Netflix

Amazon and Netflix are keeping pace with Facebook as well. On Wednesday, Amazon reached a new closing record of $2497.94. On Friday, it slightly declined to close at $2436.88. Before the opening today, Amazon shares are 1.24% up at $2,467.00.

Earlier, Amazon reported big first-quarter gains despite the coronavirus crisis due to a sharp uptick in the demand magnitude. According to the company, it will spend all its profit from the second quarter, around $4 billion, on responding to the COVID-19 pandemic. If Amazon fulfills its promise, its shareholders will reap a huge benefit, while its founder Jeff Bezos will increase his wealth.

Chantico Global CEO Gina Sanchez said:

“Amazon is the big winner in all of this because everyone [putting] off going to the grocery store has ordered directly from Amazon, has ordered anything they need from any store as most retail has been shut down from Amazon. I think Amazon has the longest, broadest story that would come out of this with the trends still intact.”

As for Netflix stock, it recorded a new all-time high on May 15, closing at $454.19 then. After the announcement about inactive subscriptions, Netflix shares fell by 2.55%, but this minor drop has not disturbed the confidence of investors. Notably, the company’s decision to cancel the subscriptions of the accounts that were inactive for a year came after a surge in the number of paid Netflix subscribers in Q1 2020.

On Friday, Netflix stock closed at $429.32, but in the pre-market today, it is 0.99% up, $433.58 per share.

Apple and Google Below Their All-Time Highs

The remaining FAANG stocks are not as lucky as Facebook, Amazon, and Netflix. While these three are conquering new peaks, Apple and Google parent Alphabet are 3% and 8% accordingly below their all-time highs. To recap, Apple’s highest closing price was $327.20 on February 12, while the all-time high of Alphabet stock totaled $1524.87 on February 19.

Apple and Alphabet stocks ended Friday’s session both in the green, at $318.89 and $1413.24 respectively.

Chantico Global CEO Gina Sanchez said:

“Apple, for example, I think if you are going to buy your next Apple phone, you might put that off. Apple, they’re such high-priced products that they require very strong consumption and what we’re clearly seeing is that this is lasting longer than we’ve expected and the consumption is going to be very weak.”

In March, when the coronavirus pandemic was most widely unwrapping, some experts said it was time to buy FAANG shares. And as we see now, they were right. However, those who believed in the so-called DAWN (Domino’s Pizza, Activision, Walmart, and Netflix) strategy, have also had the point.

Microsoft (MSFT) Stock Scaling Up and Should Join FAANG Stocks

There is one more tech company that has been doing great but is undeservingly not included in FAANG stocks. What is meant here is Microsoft (NASDAQ: MSFT). The tech giant has been on the news lately: a partnership with FedEx, the acquisition of robotic-process automation company Softomotive, the purchase of Metaswitch network, and more.

Microsoft can make rivalry to FAANG stocks, as MSFT shares are bullish as well. Last Friday, Microsoft stock closed at $183.51, or 0.04% up. In the pre-market today, it has jumped by 2.07% to $187.30.

More stock market updates can be found here.

Business News, Market News, News, Stocks
Daria Rud
Author Daria Rud

Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.

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