U.S. equities have slipped into the red on Thursday — this 30th anniversary of the 1987 Black Monday crash — in what was the most significant pullback at the open in weeks.
Is the post-August uptrend at risk? Is that long-delayed 10% correction, which hasn’t been felt since early 2016, on the horizon? Hard to say at this point, with complacency and confidence so high. Nothing appears ready to hurt this market in any sustainable way.
But it’s worth noting that a number of one-time high flyers look ready for a pullback, with technical support being taken out and sellers piling on. Many are members of the “FAANGs” that have featured so prominently in the market’s psyche.
Here are five to watch:
Fitbit (FIT) Is Running Out of Steam
Troubled wearables maker Fitbit Inc (NYSE:FIT) is suffering a nasty reversal, with shares falling below both their 50-day moving average and the lower Bollinger band, down more than 10% from the September high.
The company, which enjoyed a modicum of first-mover advantage in the fitness tracker space, has suffered as Apple Inc. (NASDAQ:AAPL) has gained traction with its Apple Watch. A pivot to a focus on digital health and a lower price point is now losing its gleam.
The company will next report results on Nov. 1 after the close. Analysts are looking for a loss of four cents per share on revenues of $391.7 million. When the company last reported on Aug. 2, a loss of eight cents per share was seven cents ahead of estimates despite a near 40% decline in revenue year over year.
Apple (AAPL) Has iPhone 8 Sales Woes
After all the Apple Inc. (NASDAQ:AAPL) hype for the iPhone X, supply chain issues, nonexistent iPhone 8 demand and Apple Watch LTE issues have dampened enthusiasm.
With pre-orders on the iPhone X starting soon, one wonders how much demand will fade by the time people actually get their hands on the device (reportedly, in very limited quantities) on Nov. 3. Shares are moving sharply lower today, slicing back below the 50-day moving average.
The company will next report results on Nov. 2 after the close. Analysts are looking for earnings of $1.88 per share on revenues of $50.86 billion. When the company last reported on Aug. 1, earnings of $1.67 beat estimates by 10 cents on a 7.2% rise in revenues.
The Walls Are Closing In on Netflix (NFLX)
Netflix, Inc. (NASDAQ:NFLX) has been on the move in a big way since August, surging some 25% on enthusiasm for subscriber growth specifically and the ongoing rise of “over-the-top” streaming services in general.
But the reporting of some soft quarterly numbers on Monday, and the realization that the cost of producing exclusive content is rising fast as competitors move in, has dampened spirits. Wedbush analysts are worried that even with a recently announced 10% price increase, the company will be burning through cash for the foreseeable future.
The company will next report results on Jan. 17 after the close. Analysts are looking for earnings of 42 cents per share on revenues of $3.3 billion. When the company last reported on Oct. 16, earnings of 29 cents per share missed estimates by three cents on a 30.3% rise in revenues.
Facebook (FB) Has Teen Drama
Facebook Inc (NYSE:FB) shares are backing off of overhead resistance, bonking on the late July high near $175.
The company’s recent acquisition of TBH — an “uplifting” polling app popular with teens — reminds everyone how the company is losing ground with younger folks more attracted to Snap Inc (NYSE:SNAP), which leaves FB as the destination for aging boomers and jaded millennials that want to argue politics and Russian ad buys during the election.
The company will next report results on Nov. 1 after the close. Analysts are looking for earnings of $1.28 per share on revenues of $9.8 billion. When it last reported on July 26, earnings of $1.32 beat estimates by 20 cents on a 44.8% rise in revenues.
Alphabet (GOOG) Products Fall Flat
Alphabet Inc (NASDAQ:GOOG) shares are stalling out near overhead resistance just shy of the $1,000-a-share level, bonking on levels first reached in June.
Not exactly the result management was looking for after a product launch blitz that included the new Pixel phone, an AI-enabled camera and new smart speakers and headphones. All of it felt pretty derivative, to be honest, and is unlikely to encourage Apple users to change ecosystems.
The company will next report results on Oct. 26 after the close. Analysts are looking for earnings of $8.33 per share on revenues of $27.1 billion. When the company last reported on July 24, earnings of $5.01 per share beat estimates by 58 cents on a 21% rise in revenues.
Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
