Is there still opportunity to be found in the FANGs? (or Apple?)
15 Feb 17
They are used to double-digit revenue growth and boast some of the most well-known brands in the world, but do the likes of Facebook, Amazon, Apple, Netflix and Google (FANG) still offer opportunities this year?
“Amazon is a great story,” AXA’s Jeremy Gleeson said, adding the Framlington Global Technology Fund he manages was significantly overweight in the company and pointing out that “The outlook for 2017 is pretty healthy for all of the FANG companies.”
Fundamentally, Amazon posts good growth reporting 22.4% annual revenue growth in December 2016 and it remains a key player in the tech world, but some raise concerns that with all the good news priced into the stock, now might not be the best time to buy and holding off might be a more strategic bet.
Andrew Herberts, head of private client investment management at Thomas Miller Investments, worried that the good margins Amazon currently enjoys could be eroded as costs rise but added the fundamentals remained solid.
He said: “These companies are increasingly important for the S&P 500 index, I would almost split between the fundamental outlook and the outlook for the stocks and actually the fundamental outlook for all of them looks ok
Herberts added: “A lot of what will make them unique could be eroded.”
Tags: FAANG | Investment Strategy
