Meta Platforms Inc (NASDAQ: FB) stock price crunched. Amazon.com Inc (NASDAQ: AMZN) takes flight. Is this end of FANG stocks? Or…
Are FANG stocks cheap?
In this episode of The Australian Investors Podcast analyst Owen Rask and ETF Securities’ Kanish Chugh talk about FANG stocks, the FANG+ ETF and make the case for FANG stocks to stave off inflation.
US stocks mentioned in this Australian Investors Podcast episode include:
- Meta Platforms Inc (NASDAQ: FB)
- Alphabet Inc (NASDAQ: GOOGL)
- Apple Inc (NASDAQ: AAPL)
- Microsoft Corp (NASDAQ: MSFT)
- Tesla Inc (NASDAQ: TSLA)
- Amazon.com Inc (NASDAQ: AMZN)
- Baidu Inc (NASDAQ: BIDU)
- Alibaba Holding (NYSE: BABA)
ETFs discussed in this podcast include:
Cryptocurrencies mentioned in this podcast:
- Bitcoin (BTC)
ASX shares that get a mention:
- Redbubble Ltd (ASX: RBL)
- Cochlear Ltd (ASX: COH)
- Amcor Ltd (ASX: AMC)
- Slater & Gordon Ltd (ASX: SGH)
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Show notes
In this episode, Owen and Kanish discuss:
- The rise of inflation across the world
- How the GOLD ETF has performed since inflation has become the talk of the town
- The FANG ETF and why it booted Twitter in favour of Microsoft
- Owen’s four-point checklist for companies to avoid (see below)
- Microsoft’s dominance and the takeover of Activision Blizzard
- Facebook/Meta Platforms’ $300 billion wipe-out and what it means
- Why Apple & Google have gained at the expense of Facebook/Meta Platforms
- YouTube’s dominance — it’s now bigger than Netflix Inc (NASDAQ: NFLX)!
Owen’s checklist for companies to AVOID:
- In my experience, the types of companies that are being hurt by inflation include those that score poorly for these metrics:
- They sell discretionary products, like consumer-facing retail products such as fashion. In other words, they’re not mission-critical like software.
- They don’t have intangible value wrapped around their service, such as brand equity. For example, Cochlear (ASX: COH) has brand prestige for implantable hearing aids.
- The business model is sensitive to supply constraints. Redbubble (ASX: RBL) is one such company. It is facing higher input costs for t-shirts and increased shipping expenses due to fuel costs and driver availability. And it cannot pass on these costs like say, Amcor (ASX: AMC) can.
- The financial position is weak. It’s weighed down by lots of debt, poor cash flow, no profits and legacies of empire-building management teams (e.g. Goodwill buried under intangibles and exploding share counts). Vocus Group (ASX: VOC) was an example of this, so was Slater & Gordon (ASX: SGH).
Date of recording: February 4th, 2022
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