Facebook, Amazon, and Netflix all broke out to new highs this year. But there’s a G in FANG. Google will most likely be next to break out to new highs. We think there is enough fundamental reason to do it as we’ll explain.
About two months ago on April 18th we told you we thought FANG stocks were headed to new highs. We’ve been bullish, as you know.
The last letter in FANG is also about to be last to break out, Google (NASDAQ:GOOG)(NASDAQ:GOOGL).
Fundamentals Driving FANG To New Highs
Each FANG stock has been seeing accelerating revenue growth.
Here’s the numbers.
Notice a trend? Each FANG stock is seeing accelerating revenue growth. That drives the earnings model and as you know earnings drive stocks.
As for Google, based on our latest work, we think GDPR hurts smaller publishers and forces advertisers to the safer larger plays like Google. Given potential benefits from the new privacy legislation we think Google has more to go on the upside.
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We have no positions but are looking to enter on weakness each of the stocks above for a customer.