A week ago, the FANG+ stocks — Facebook (FB), Amazon (AMZN), Netflix (NFLX), Google parent Alphabet (GOOGL) and Dow industrials component Apple (AAPL) — were in sync. All five had broken out in 2017, with all but Netflix still in buy range. But over the past week, Apple surged on earnings, Facebook wavered, Amazon and Alphabet lost key support, while Netflix chilled.
Apple is the top performing stock on the Dow Jones industrial average so far this year, up more than 11% so far. On Tuesday, Apple reported slim earnings per share and revenue gains for its holiday quarter, ending three quarters of year-over-year declines for both and topping forecasts. While investors are hoping that the upcoming iPhone 8 will be revolutionary, the current iPhone 7 still showed solid demand, while services revenue is growing quickly.
Apple, which had been in a buy zone since clearing a 118.12 cup-with-handle entry point on Jan. 9, vaulted 6.1% on Wednesday to an 18-month high.
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Facebook reported stellar earnings and revenue growth late Wednesday that easily beat forecasts, even though it was the second straight quarter of decelerating gains. The social network giant reiterated that ad revenue growth would slow meaningfully in 2017. But Facebook also said that expenses will rise sharply as it steps up already-brisk hiring and R&D.
Facebook shares hit a record high on Thursday morning, but quickly reversed lower. However, the stock never undercut its 129.37 buy point, first cleared on Jan. 23.
Amazon late Thursday reported better-than-expected earnings for the holiday quarter. But sales fell short, and the e-commerce giant’s revenue outlook was soft as well.
Amazon Web Services, the cloud computing unit that delivers the bulk of the company’s profit, saw revenue rise 47%. But that was below views and down from Q3’s 55% yearly gain. That could be a sign that the cloud computing wars with the likes of Microsoft (MSFT), IBM (IBM) and Alphabet — which got a cloud pact with Snap this week — are affecting AWS, which remains by far the industry leader.
Amazon cleared a cup-with-handle buy point of 821.75 on Jan. 14. But on Friday, shares sank 3.5% to 810.20 in triple-normal volume.
Netflix cleared a long cup-with-handle base on Jan. 4 with a 129.40 buy point. For the next several sessions, shares stayed close to the mark. On Jan. 19, shares gapped higher after reporting better-than-expected earnings and subscriber growth and bullish guidance that night before. Since then shares have consolidated, essentially kicking back and “Netflix and chill.”
Alphabet didn’t report earnings last week, but suffered an earnings-related sell-off. Alphabet reported earnings that fell short of views late on Jan. 26. Alphabet initially rose to a record high on Jan. 27, but reversed to close down in heavy volume. The selling continued this past week, sinking below its 824.40 buy point on Monday, again in heavy trade.
Alphabet had broken out on Jan. 6, then moved sideways ramping up for a few days ahead of its earnings report.
Alphabet has suffered a worrisome reversal. On the upside, Alphabet found support near its 50-day line.