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If there ever was a perfect example of a bright, shiny object, it's the fabulous five known as the FAANG stocks – Facebook Inc. (Nasdaq: FB), Apple Inc. (Nasdaq: AAPL), Amazon.com Inc. (Nasdaq: AMZN), Netflix Inc. (Nasdaq: NFLX), and the "new Google": Alphabet Inc. (Nasdaq: GOOG).
Together, they comprise around 38% of the Invesco QQQ Trust, the tracking ETF for the Nasdaq 100.
No stocks receive more attention than FAANG stocks, especially around earnings time.
And with good reason. Their numbers are hotly anticipated and typically produce huge price swings (some might call them "overreactions") that have market pundits racing to see who can interpret the results first.
I prefer to let the dust settle a bit. Now that all FAANGS except Apple have reported (as I write this) and the initial reactions are out of the way, I'm using my Best in Breed system to analyze each to see where these stocks are headed.
There's no money to be made rehashing what happened and why. We're more interested in where these stocks are going and how we can profit.
Today, realizing that Apple is still a wild card, I want to look at the best (Amazon) and worst (Facebook) of the lot. Later this week, I'll analyze the remaining three. And, as usual, I'll give you some trade ideas to leverage my analysis.
Let's get started with the Best in Breed (so far): Amazon.
About the Author
Chris Johnson is a quant - he's obsessed with building and perfecting mathematical models that allow him to predict, with startling accuracy, the direction of the markets, entire sectors, and individual securities. For the last year, he's been researching and building a new system that lets him move swiftly in and out of the hottest stocks in the market for life-changing gains - entirely on his own terms. The results of his newly-minted Night Trader system are nothing short of amazing.
Chris also contributes to Money Morning as the Quant Analysis Specialist.