FANG stocks finish February with a bang
Earlier in February, tech stocks looked like they were having a rough time. But by the time the month was over, it was just an unpleasant memory. The “big four” tech titans – known as FANG – Facebook, Amazon, Netflix, and Google, have surged forwards to new heights. This is great news for Dominion’s Ecommerce Fund (which holds all four stocks), but it is also great news for the tech sector generally given that the FANG stocks act more or less as a bellwether.
So far, 2018 has been a great year for “Big Tech”
SOURCE: Yahoo Finance
Facebook, Amazon, Netflix and Google are all in expansion mode. These giant companies – seemingly amongst the largest companies that have ever existed – have all found plausible routes to grow. Given that their market caps are measured in the hundreds of billions of dollars, and that they have access to the world’s brightest minds, they’re a difficult proposition to bet against.
Facebook is making a play for the streaming video market, and may be considering streaming music too. Amazon is expanding into healthcare, physical retail, and foreign markets. Google is expanding into numerous markets, but perhaps most notably it’s planning to spend $2.5 billion expanding its operations at home. Netflix is making a concerted push into India (the company’s CEO, Reed Hastings, said: “Given the consumer base, the next 100 million subscribers for us is coming from India”.
At the end of February, MKM Partners technical analyst Jonathon Krinsky summed up the obvious in a note to investors. It read: “The trends remains unequivocally bullish on both an absolute and relative basis.”
Dominion holds all four FANG stocks in its Global Trends Ecommerce Fund.
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