U.S. equities were under pressure again on Thursday as higher interest rates continued to rout sentiment and fuel worries that the Federal Reserve is about to snuff out the bull market and economic expansion. Things were harrowing Wednesday night, with the Dow Jones Industrial Average down some 1,000 in the after-hours session. President Trump was quick to blame the selloff on the Federal Reserve, who he claims is tightening policy too quickly.
Some buying came back late in the session on Thursday after White House Economic Advisor Larry Kudlow walked back some of President Trump’s criticisms of Fed chairman Jerome Powell. Trump also added that he wasn’t planning on firing Powell, which restored some confidence.
But much damage has been done on a technical basis, with the Nasdaq Composite careening below its 200-day moving average for the first time since the summer of 2016. Yes it’s been that long. So watch for further downside extension, especially for hard-hit internet stocks.
Here are five internet stocks to sell now:
Netflix (NASDAQ:NFLX) shares are breaking down below their 200-day moving average for the first time since late 2016 to mark a decline of nearly 25% from the double-top highs set in June and July. FAANG stocks — of which Netflix is a key component — were market leaders throughout 2017 and into the summer of 2018, but are under growing selling pressure now as investors scramble to protect gains.
The company will next report results on Oct. 16, after the close. Analysts are looking for earnings of 68 cents per share on revenues of nearly $4 billion. When the company last reported on July 16, earnings of 85 cents per share beat estimates by 6 cents on a 40.3% rise in revenues.
Amazon (NASDAQ:AMZN) shares are down more than 17% from their double-top high set in September near $2,050 and are closing in on outright bear market territory. Amazon has been one of the most consistent momentum gainers of recent years but looks set for a move below its 200-day moving average — something that hasn’t happened since early 2016.
The company will next report results on Oct. 25, after the close. Analysts are looking for earnings of $3.25 per share on revenues of $57 billion. When the company last reported on July 26, earnings of $5.07 beat estimates by $2.54 per share on revenues of 39.3%.
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) shares are trying to rally but fell to test lows not seen since May earlier in the trading session. Already down more than 14% from the high set in late July, watch for a drop down to the late March low near $1,000, which would be worth a further decline of roughly 10% from here. The company’s recent unveiling of its Pixel 3 phone has been overshadowed by political pressure and negative headlines related to its “Dragonfly” Chinese search engine.
The company will next report results on Oct. 25, after the close. Analysts are looking for earnings of $10.5 per share on revenues of $27.3 billion. When the company last reported on July 23, earnings of $11.75 beat estimates by $2.05 per share on a 25.6% rise in revenues.
Facebook (NASDAQ:FB) shares are testing down to the lows seen in March, capping a decline of more than 35% from the hit set in July amid ongoing worries about stalled user growth, growing privacy concerns and a shift by younger users to other social media platforms. A recent push by the company into hardware — with the Portal and Portal+ — seems like a derivative distraction.
The company will next report results on Oct. 30, after the close. Analysts are looking for earnings of $1.47 per share on revenues of $14.3 billion. When the company last reported on July 25, earnings of $1.74 beat estimates by 4 cents per share on a 41.9% rise in revenues.
Chinese internet stock Baidu (NASDAQ:BIDU) has suffered a decline of more than 31% from its May high to return to levels not seen since last summer. Watch for a drop to the June 2017 low near $175, which would be worth a further loss of 11% from current levels. Chinese stocks in general have been under pressure from a strengthening dollar, broad weakness in emerging market currencies and evidence of a slowing economy in China.
The company will next report results on Oct. 25, after the close. Analysts are looking for earnings of $1.83 per share on revenues of $4.3 billion. When the company last reported on July 31, earnings of $3.18 per share beat estimates by 59 cents on a 27.6% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.