What The Price Charts Tell Us

They used to call these the FAANG stocks but I haven’t seen that term employed too much lately. Maybe it’s because they’re just not as popular as they used to be. Or maybe it’s the name changes.

Whatever it is, the reason the NASDAQ
NDAQ
-100 remains well below its November, 2021 price peak is the failure of major components Facebook (now Meta), Apple, Amazon, Netflix and Google (now Alphabet) to rally.

Name changes followed by selling is the story for Meta and Alphabet. Steadfast giants Apple and Amazon are unable to sustain significant upward movement. And then there’s Netflix where new subscribers have stopped showing up and signing up.

Here’s the weekly price chart for Meta:

“Quite a drop” doesn’t quite cover it for this former big tech all star. Mark Zuckerberg and company are just not getting the respect they used to get. Meta hit the 390 level during August/September, 2021 and now goes for a measly 200. That comes to almost a 50% slide, something that would have seemed hard to believe a year ago if you just watched and listened to CNBC all day. It looks like there’s significant support (aka “buyers”) down there at just below 140, the March, 2020 pandemic low.

The Amazon weekly price chart looks like this:

It’s not as weak as Meta but that’s still a downtrend from the November, 2021 high just above 3700. The heavy wave of selling took the stock down to just below 2700 in late February/early March, 2022 for an unfortunate 27% drop in price in less than a year. Amazon’s bounced since then but thus far has been unable to recapture those levels above that downtrend line. There’s plenty of likely support down there at about 1600 where buyers came in during the March, 2020 sell-off.

Here’s the weekly price chart for Apple:

This is the best looking of the former FAANG group, but it’s still a problem that the uptrend line from March, 2020 has been broken. The early 2022 peak of above 190 ended the upward run and the drop to 150 is now a likely support area. Apple bounced off of that level during March this year but is — so far — unable to retake the former high.

Here’s the Netflix weekly price chart:

Investors dumped the stock today after the company reported a seriously declining number of new subscribers. It’s a price descent so ugly and horrifying that Pershing Square hedge fund manager Bill Ackman unloaded his entire position today — after buying a boatload of the stock just months ago. The price chart speaks for itself but note that today’s closing price is lower than the previous low of December, 2019.

This is the weekly price chart for Alphabet:

The stock peaked out in January of this year at just above 3000 and sold off to the 2500 level where it’s bounced a couple of times. If there’s another round of selling, the next level of support comes in at just above 2200. Like Apple, Alphabet’s chart does not look like a disaster (see Netflix) but, on the other hand, it hasn’t been able to regain previous recent highs.

The NASDAQ-100 will have a tough time making progress as long as these major components remain in downtrends.

More analysis and charts on my website right here:

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Not investment advice. For educational purposes only.