The rap is a simple one: you can't have these stocks lead the market. It's absurd and they have too much market cap when compared to the market capitalization of whole countries.
Now I admit it does feel strained to have such a limited number of stocks going higher. But this time I do beg to differ. Advanced Micro (AMD) , for example, is not FAAANG. It's a company that has developed strong personal computer, graphics and data center semis.
Dropbox (DBX) is not FAAANG and its stock is crushing it, up double from where it was priced as business is quite strong. Remember, this revaluation makes sense. Content is increasingly scattered. Tools people use are fragmented. Dropbox gives you a unified home for a content, global sharing network and new product experience. Paying users have gone from 6.5 million in 2015 to 8.8 million in 2016 to 11 million in 2017. Remember there is a network of 500 million free users and all it needs to do is convert 2 to 4 million this year. Enterprise accounts are growing because of individual users demanding it.
Microsoft (MSFT) isn't FAAANG. It's a software company where its cloud growth is extraordinary. That's because many retailers need cloud space and don't want to help Amazon. The valuation has to come up given this strength that wasn't reflected in the previous quarter.
Square (SQ) and PayPal (PYPL) aren't FAAANG. Both are payments companies, with Square doing well with small to medium sized business with its lending against proceeds method and PayPal going international as well as the quicker adoption of Venmo.
Workday (WDAY) isn't FAAANG and its stock is off to the races on a simple catch-up play to the rest of the cloud kings.
Red Hat (RHT) is going higher because of more traffic to the cloud which means it isn't FAAANG either.
Then there are others that don't get the negative scenario. How about Chevron (CVX) , which is up on a brokerage stock recommendation as the best major when it comes to oil leverage. Diamondback (FANG) and Pioneer (PXD) are joining the move as the expectation that there will be no real boost in production when OPEC meets later this week.
Yes, there's plenty going up away from FAAANG. It's just that, simply because they don't fit the gloom narrative, it is very tough for the amalgam to matter other than in a negative way, as "an accident waiting to happen."
What if it doesn't?
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