FAANG

To many, FAANG stocks define the market. To me, a conservative investor, it is not. For market-cap ETFs such as SPY, FAANG has more weights than other stocks. As a group, FAANG has been very profitable for the last year. To me they seem to be risky today. The following tables summarize them and I’ll check them one year later (or after September, the worst month of the year) to confirm my findings. It is also a case of momentum vs. value.

All the info are available free in web sites such as finviz.com. All data are based on 8/5/2017. They are for info only and I’m not liable for any errors.

Stocks	Current Price	Gain in a year
FB	169.62	36%
AMZN	173.85	30%
AAPL	156.39	48%
NFLX	180.27	93%
GOOGL	945.79	19%
Avg.1	247.41	45%
Beat SPY by		216%2
SPY (for comparison)		14%

¹ All averages in this article are estimates.

² Beat = (45% - 14%) /14%. Similar to other calculations for “Beat”.

Fundamentals

Stocks	P/E	P/E Forw	P/S	P/B	Debt/ Eq.	Sales Q/Q	EPS Q/Q	ROE
FB	37	26	15	7	0.00	45	69	23
AMZN	16	14	6	4	1.11	2	18	27
AAPL	18	15	4	6	0.73	5	10	35
NFLX	221	90	8	25	1.55	32	58	13
GOOGL	34	24	7	4	0.03	21	-28	14
Avg.	65	34	8	9	0.68	21	25	22
Beat SPY 1	164%		277%	186%
SPY2	25		2	3

¹ Very rough estimates.

² Most fundamental metrics are from other source than finviz.com, so there may be small discrepancy.

Technical

Stocks	SMA50%	SMA200%	RSI(14)	52-week height	Short%	Insider Trans.
FB	8%	23%	67	-3%	1%	-86%
AMZN1	35%	8%	51	-6%	1%	0%
AAPL	5%	17%	63	-2%	1%	-31%
NFLX	10%	26%	59	-6%	6%	-69%
GOOGL2	-2%	8%	41	-6%	0%	0%
Avg.	11%	16%	56	-5%	2%	-37%
Beat 3  SPY by	1020%	173%	-9%
SPY	1%	6%	62	0%

¹ Recent double top. Bearish.

² Multiple top.

³ Very rough estimates.

The two SMA (Simple Moving Average) technical metrics are positive.

Summary

As a group, FAANG is fundamentally unsound but technically sound compared to SPY. I said the same on the market.  As suggested, use trailing stops if you own any of these stocks. When they turn to be technically unsound, this is the time to exit. They could stay in the current valuations for a long time. However, when the institution investors are dumping them, they will fall very fast and steep. SMA-20% would be another indicator for exit. One’s opinion.

Afterthought

The above is written by a human being in 2017. You can see how easy for the robot to gather this info, analyze the data, confirm the results (using the historical database) and trade the stocks without any human interactions. 
Stock analysts, your professional days are numbered.

NFLX is the most fundamentally unsound. Will check its performance in one year.

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This article is written for my book Profit from 2017 Market Crash.