2020 could quite easily be a great year for FAAMNG stocks if things continue the way they currently are. FAAMNG comprises Facebook (FB), Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), Netflix (NFLX), and Google’s parent company Alphabet (GOOG and GOOGL). These are the biggest tech and internet stocks in the world.
FAAMNG Stocks in 2020
A publication from The Arora Report shows the current money flow into these companies via their stocks. Dividing each stock into several data points, the table shows specific measures for the stocks, which can easily be used for prediction. All of the data points look in one direction – that all FAAMNG stocks are already reasonably bullish for 2020.
First, there is the short squeeze. This happens when sellers are triggered in acquiring shares that had already been short sold. The possibility of a short squeeze could be positive because many sellers tend to buy a lot of shares. The short squeeze data points all currently look good.
For the Risk-Adjusted Rank on the table, Netflix isn’t doing so great. However, its short squeeze more than makes up for it as its extremely positive.
Other data points include the Momo Crowd and Smart Money. Momo represents the momentum of the money flowing into the market and both that and Smart Money are all but flashing buy signals.
Let’s look at three of the hottest FAAMNG.
Microsoft has been blazing quite the trail for a while now. Between January 2019 and now, MSFT has surged over 57% and is set to do more wonders. The tech giant’s Azure cloud business and its subscription-based platforms are keeping predictions high. Currently at $162.09, MSFT’s price target has been set at $189 by Keith Weiss, a Morgan Stanley exec. It has already pulled in year-to-date (YTD) gains of 2.78%.
Facebook has branched into a few other sectors including news and health. However, even the social media giant probably didn’t see last year’s backlash coming. After announcing plans for its Libra cryptocurrency, Congress came down hard on the Mark Zuckerberg-led company. Regardless, analysts believe one of the company’s most potent catalysts for 2020 would be positive news for Libra. If Libra gets Congress’ greenlight or Facebook does move forward somehow, shares are expected to spike.
FB stock is currently at $218 but analysts are targeting a $242.50 median price and a higher estimate of $342.
Some analysts even think that AAPL is a little too hot. Currently, at $311.79, AAPL boasts of 5.44% already and has done more than 100% in one year. With increased iPhone 11 shipments and several rumors of more offerings for 2020, it could scale another 100% in 2020.
In general, none of the FAAMNG stocks are currently classified as anything less than positive. Even though its only 10 days into the year and things could change, the atmosphere is significantly bullish.
For example, Amazon stock is trading for around $1 901. Just compare: it started the year at around $1850. And a year ago, its price was close to $1630.
Google stock price is $1 419 while it was priced at $1365 when the year began. And at the beginning of 2019, it could be bought for around $1000.
Netflix is not the best gainer on this list. Currently, it is in red (but insignificantly). Now its stock price is $335 (-1%). But at the beginning of the year, it was trading for $329 which demonstrates its price growth. Last year began for Netflix with the around $290 price level.
When there are positive measures all round, people sometimes get skittish. This is because a lot of the time, extreme bullishness could very easily trigger pullbacks. However, current data points and predictions don’t do too much for the pullback theory.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.