Human nature is a funny thing.
A few years ago, when stocks formerly known as FANGs were leading the market higher, it seemed like everyone wanted a piece of the action.
FANG stocks are expensive, but they are fun. They seem to increase almost every day.
It has been an extremely difficult year for FANG, which I will call MANA – The Meta Platform (META), (formerly Facebook), Amazon (AMZN), Netflix (NFLX) and Alphabet (GOOGLE) (formerly Google).
Technically, the stock is in a bear market, but MANA stocks look as if they’ve been through a crash.
Now that interest has waned, is it time to take a fresh look at MANA? Now that these guys have been defeated, is it time to step in?
And what is the right price to buy these stocks?
Meta . Platform
Meta Platforms broke out earlier this week after announcing a $9.4 billion loss in Reality Labs, the company’s metaverse unit. Worse yet, Real Labs is projected to post significantly larger losses in 2023.
As of now, shares of META are down nearly 71%. Where will the Meta Platform finally find its footing?
I am looking at a monthly reversal candle from August 2015 as the best opportunity to regroup in stocks. That month’s low price was exactly 72 dollars, so it’s no coincidence that I would buy at that level if META got there.
Amazon
Amazon’s market capitalization fell below $1 trillion on Thursday afternoon after the company missed revenue estimates. Shares of the world’s largest online retailer fell 15% after the market closed after losing 4% in normal trading.
What is the right price for Amazon? In the early days of the pandemic, stocks exploded higher after forming a bullish hammer (shaded yellow). The low of that candle was $81.30, which seems like a great price to buy on Amazon.
Netflix
Video streaming giant Netflix may have bottomed out. After falling more than 76% from its October 2021 high, the stock has found its footing and is now trending higher.
What is the right price for Netflix? The market sell-off could send stocks back to this month’s lows of $212 (arrow). If Netflix hits that price as a result of the overall market action (as opposed to a company-specific issue), I would consider buying it.
Alphabet
Shares of Alphabet have lost 11% since the company announced earnings earlier this week. For the year, the stock is down 36.3%.
Alphabet’s monthly candle is forming a bearish (shaded yellow) pattern. Unless the stock has a major reversal late Monday, a monthly meteor will form, signaling another move lower is coming.
Where should investors buy Alphabet? A previous resistance area near $82 (black dotted line) will now act as support.
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