Is FANG -- Action Alerts PLUS holding Facebook (FB) , Trifecta Stocks name Amazon (AMZN) , Netflix (NFLX) and Google parent Alphabet (GOOGL) -- unstoppable? Last night's tour de force from Facebook, where advertisers are paying more for ads and clamoring for more copy to go against, tells you why this group remains the best there is among the large-cap tech stocks.
Facebook put on its usual clinic last night, delivering numbers that have to chill everyone else, because two billion people check into this thing each month and that number will spread to the daily active users over time, as has been the case.
You can only imagine what happens if the 1.3 billion daily active users get swelled by more monthlies converting, as the monthlies tend to be the pipe for the dailies. There will be no shortage of good copy to run ads against for ages.
When Mark Zuckerberg talked about how he wants to speed up ads for messaging, that told you that he's not going to fall into the trap that many think -- wrongly, I believe -- has happened to Alphabet, where search is yielding tons of clicks but not enough profit.
By the way, for sure I would start accumulating Alphabet today as the selling pressure dropped radically in yesterday's session.
Of course, FANG could be under challenge tonight when Amazon reports, but somehow, I am not all that frightened, given that estimates are fairly low -- $1.50's the whisper -- and we had Amazon Prime Day, the first shopping day to rival Christmas in this country.
Let's see: Netflix blows away international numbers. Alphabet has to speed up its other bets to make it so they can offset search -- Waymo, anyone? But I still regard the negatives as nitpicking. Facebook so far is best in show. But Amazon is like the rain. Who can stop it?
The only real constraint I found myself thinking about: Can Facebook create more people on Earth? At what point do they bump up against the 7.4 billion-person limit of the globe?
Now's, that's a high-quality problem.