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FAANG plus MSFT Review

FAANG is the popular acronym comprising of the five individual companies – Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), and Google - now Alphabet (GOOGL). Along with Microsoft (MSFT), they are the technology giants of the financial markets. Currently, four of these companies are now the largest companies in the world, with market capitalizations of over $1-plus trillion - AAPL ($2.05 trillion), AMZN ($1.57 trillion), GOOG ($1.20 trillion), and MSFT ($1.64 Trillion). The two smallest remain FB ($794.48 billion) and NFLX ($211.66 billion).


Each is a leader in their respective industries. FB and GOOG are major global players in online advertising, search engine, and social media. AMZN captures the lion's share of e-commerce and cloud computing. Although NFLX is facing greater competition from other streaming services, it remains an influential player along with GOOG (YouTube) in online streaming. Even MSFT and AAPL, once slow-growing software and hardware Technology names, have transformed themselves into high-end growth giants involved in cloud computing, AI, enterprise services, and consumer electronics.


Most retail and institutional investors have FAANG plus MSFT in their portfolios. The sheer size of these companies and the effect it has on the overall stock market is one of the reasons they continue to be widely followed by the investment public. Most recently, there are some underlying concerns in the FAANG stocks.


So, are the rally in the big tech stocks over, or is this a pause that refreshes?


From a technical perspective, mixed signals are coming from the FAANG plus MSFT, at least from a near-to-medium term basis. GOOG is technically strong as it has recently broken out to new all-time highs. AAPL, FB, MSFT, and AMZN continue with their consolidations via neutral sideways trading ranges. NFLX is technically weak and vulnerable to further selling. Enclosed below are the technical reviews for the six technology titans.


Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com


Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

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