At first glance, Royal Caribbean (RCL) , AMC Entertainment (AMC) , General Motors (GM) and Action Alerts PLUS charity portfolio holding Apple (AAPL) have nothing to do with each other, except for the fact that they all reported important numbers within 24 hours of each other.
In fact, though, they have everything to do with each other. They have to do with an allocation of time that cuts to nothing more than a revolution of how we spend our time, and the analysts and the skeptics -- who abound everywhere -- just can't seem to put it together. So, once again, I will try using three examples.
First, AMC. In an absolutely stunning reversal of fortune, AMC reported that it lost $178 million this summer, when consensus was for roughly breakeven. US. box office fell a stunning 4.4%. That's seismic.
Second, GM's sales fell 15% last month. Again, seismic.
These are not ordinary numbers. They are step function numbers.
What explains it?
Experience, that's what. Documentable, recordable experience, with viewing and ordering taking place at home unless you are trying to create memories that can be shared with others.
You think I am making it up?
Go listen to Royal Caribbean CEO Richard Fain yesterday on his conference call. You'd hear "instead of buying TV and cars, they seem to be buying memories as never before." This man gets it: "since we're in an industry that specializes in providing great memories, that trend plays right into our sweet spot."
It's not a U.S. phenomenon, Fain explains: "Even better, the trend shows no respect for borders and seems to be occurring all around the world: U.S. Europe, Alaska, Baltic, Asia, marvelous industry-wide demand."
What are they doing with their memories?
They are recording them on Facebook (FB) . Two billion people are recording them on Facebook, or watching them on Facebook every month.
They are recording them on YouTube, with one billion hours of YouTube per day.
And how are they watching them? They are watching them on Apple iPads, which showed a 15% increase and on the iPhone 7Plus which, while not broken out, have to be an ever-increasing part of the mix. They are watching after downloading apps that help them watch, which produced a 22% increase in service revenue that is now $7.2 billion and is by far the most important figure in last night's quarter.
How do we know this?
Because we heard it on the AT&T (T) call, specifically, in recognition of their buy of Time-Warner. On their conference call, they explained that people are watching Time-Warner on their handheld -- again, one with better watching abilities, the iPhone Plus.
Of course, it's not just Time-Warner. We know that more than 30 million Americans play video games. Tens of millions do worldwide. Shout out on the Apple call to TenCent, which is video game central and the E-sports kingpin, care of League of Legends.
They watch one billion hours of YouTube per day. They shop on Amazon (AMZN) with their handheld in a way that's easy and shows them the product they want in perfect resolution. They watch 1.2 billion hours per week of Netflix. They watch an undocumented amount of HBO programming, NFL on Direct TV and on Amazon and, soon, now Apple productions.
So now let's put it all together. The way people spend time has radically and tectonically shifted toward self-video creation, video games and internet programming easily watched on an Apple device of varying, but larger size.
That's the commonality of FAANG -- Action Alerts PLUS holdings Facebook and Apple, Trifecta Stocks name Amazon, Netflix (NFLX) and Google parent Alphabet (GOOGL) . The tectonic shift is why FAANG is not a flash in the pan. And make no mistake about it, we have to accentuate and elongate the A when we say FANG.
It's a simple thesis. The "create memories to watch" thesis, coupled with internet games and internet programming best watched on the go -- but not driving or at home, or going to the movies -- while ordering food and drinking through Uber and GrubHub (GRUB) .
These are all the reasons why it is not 2000. In 2000 there was a different clock of habits. Or, as Reed Hastings says, the competition for Netflix is your waking hours, the waking hours in which you can play video games and watch other internet TV while surfing Facebook for everyone else's programming while putting your own memories on Instagram.
It's all of a piece. It's misunderstood, and will remain misunderstood because the change isn't covered by analysts who are all silo-ed and isn't documented by any entities that I can find, because it still eludes people.
As long as it does, stay long FAANG. It's only getting more pronounced as we go along in time. Tectonic shift equals higher price to earnings multiples, equals increased capitalization and a continued increase in the value of everyone caught up in this new food and time chain.