Tuesday's Market Minute: REVIEWING THE FAANG 4Q

Now that Alphabet has reported earnings, all of the big tech giants that make up the FAANG index have shown their hands from 4Q19.

The market reacted negatively to Google’s parent company posting a miss on revenue estimates, and shares lost about $60 in postmarket trading. Year-over-year, revenue increased by 17 percent (AAPL was the only FAANG name to not report double-digit revenue growth in 4Q), and GOOGL GOOGL revealed to investors annual sales from its YouTube advertising for the first time: $15 billion. The rest of the FAANG names have been on a wild ride over the last month. Shares popped after earnings reports from Netflix Inc NFLX, Apple Inc AAPL, and Amazon.com, Inc. AMZN showed strength in highly anticipated revenue streams: NFLX continued to add paid members worldwide; AAPL’s customers bought the iPhone 11 and are paying monthly for more services; and AMZN made slightly more of a dent in Microsoft MSFT Azure’s space of the cloud market with AWS.

Facebook Inc. FB, on the other hand, did not impress the street with its earnings beat and 25 percent revenue growth Y/Y. But what do all of these stocks really have in common? Initially it was the momentum play, but on a 52-week period, the charts of these companies look a lot different than they did a year or two prior. Only AAPL has maintained the upward trajectory that once bonded the FAANG names.