I started the year with focus on the FANG. Even my first post on this site was FANG. How have these performed through the year and why to these keep performing.
In my post “The start of the year – January” I stated: “These are stocks worth watching as a long term investment. Pick your own personal favorites”. So how did it go.
Facebook and Netflix up around 50% this year. Netflix has even climbed to top 5 out of the best S&P500 52 weeks. Amazon has returned 36% and Alphabet 21%.
I am impressed by the performance of these giants, just remember these are not exactly small caps.
So why do these market performers keep performing.
Facebook keeps adding daily active users. This being 1,32B in the 2nd quarter 2017. This user growth gives the company an even higher revenues potential through its advertising business.
Netflix came in with 104m subscribers at its latest earnings update. This growth of subscribers has been going on for years. The market likes such growth.
My old favorite all from the 90’s Amazon keeps growing and Wall Street loves it. In addition it seems like its profitable cloud business makes the stock price shine.
Alphabet been a favorite for years. Its advertisement business on YouTube and Google driving the revenues up for years. The co has climbed to become the world’s 2nd largest listed company, just after Apple.
What about the time ahead. Netflix has a great potential of subscriber growth. One can ask oneself is the potential 500m or perhaps 1B. Either way you see it the potential being an important factor.
When you talk about Facebook it is also potential that comes into mind. Even with the enormous amount of daily users, there is a great revenues potential in its advertisments.
Amazon I believe still will grow and hence still a good long term investment.
Alphabet has like Facebook a great potential for revenues growth. Just imagine how revenues may grow from all advertisements on its YouTube channel and search engine Google world wide.
I am happy I tried to make you go long FANG the start of the year. 50% return in half a year for two of them a very good performance. Some of the best long term investments around.