It’s going from bad to worse for the largest and most important stocks on Wall Street. I’m talking about the FANG stocks that, on account of their huge market capitalizations, carry outsized significance in the widely held averages like the S&P 500.
The entire sector is getting slammed on worries President Trump is preparing to take a much firmer anti-trust stance against the tech giants on anti-trust grounds. A tact the Europeans have taken for years. This also comes at a time when the tech industry finds itself at the center of the deepening U.S.-China trade rift, with the White House pressuring U.S. firms to isolate China’s Huawei.
The FANG stocks aren’t immune, despite their size and popularity. Here’s a look at the charts.
Facebook (FB)
Facebook (NASDAQ:FB) shares are dropping hard out of a seven-month uptrend, violating critical support near its 50-day moving average. This marks a 14%+ decline from the high set in late April. The company has been also caught up in reports of tighter regulatory scrutiny for big-tech firms as it continues to reel from scandal after scandal.
The company will next report results on July 24 after the close. Analysts are looking for earnings of $1.85 per share on revenues of $16.5 billion. When the company last reported on April 24, earnings of $1.89 beat estimates by 28 cents per share on a 26% rise in revenues.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) shares are cutting below their 200-day moving average, testing the $1,700-a-share level and support from the top of a three-month trading range suffered between January and March. The Washington Post reported over the weekend that anti-trust regulators in the United States have put the company under the watch of the Federal Trade Commission — potentially foreshadowing increased regulation for the largest tech companies like the FANG stocks.
The company will next report results on July 25 after the close. Analysts are looking for earnings of $5.51 per share on revenues of $62.5 billion. When the company last reported on April 25, earnings of $7.09 per share beat estimates by $2.43 on a 17% rise in revenues.
Netflix (NFLX)
Netflix (NASDAQ:NFLX) shares are threatening to break down below their 200-day moving average, which would put an end to a six-month sideways range and mark another failed attempt to push beyond prior highs set in the summer of 2018. While the company isn’t the focus of anti-trust concerns like the other FANG stocks, that’s because it’s in the middle of an incredibly competitive online streaming industry with fresh challengers like Disney (NYSE:DIS) and Apple (NASDAQ:AAPL) pushing in on its turf.
The company will next report results on July 15 after the close. Analysts are looking for earnings of 56 cents per share on revenuers of $4.9 billion. When the company last reported on April 16, earnings of 63 cents per share beat estimates by six cents on a 22.2% rise in revenues.
Alphabet (GOOG,GOOGL)
Google parent Alphabet (NASDAQ:GOOGL,NASDAQ:GOOG) — the G of the FANG stocks — is watching in horror as shares drop nearly 7% in mid-day trading on Monday, rapidly falling away from its 200-day moving average to test the December-January lows. This marks a 20% decline from the high set in late April, qualifying for an outright bear market. This comes after reports in the Wall Street Journal that the U.S. Justice Department is preparing an anti-trust investigation of the company.
Management will next report results on July 22 after the close. Analysts are looking for earnings of $11.94 per share on revenues of $38.3 billion. When the company last reported on April 29, earnings of $9.50 missed estimates by 94 cents per share on a 16.7% rise in revenues.
As of this writing, the author held no positions in the aforementioned securities.
