Another 'FAANG' Stock Stumbles

Wall Street loves acronyms and catchy nicknames... About a decade ago, TV personality Jim Cramer wanted a way for his viewers to easily remember a key group of stocks. So he used the first letter of each company's name... [Chaikin PowerFeed]( Another 'FAANG' Stock Stumbles By Pete Carmasino, chief market strategist, Chaikin Analytics Wall Street loves acronyms and catchy nicknames... About a decade ago, TV personality Jim Cramer wanted a way for his viewers to easily remember a key group of stocks. So he used the first letter of each company's name... The four stocks were Facebook, Amazon (AMZN), Netflix (NFLX), and Google. Facebook and Google, of course, now go by Meta Platforms (META) and Alphabet (GOOGL), respectively. Just like that, the acronym "FANG" was born. It later evolved to "FAANG" as Wall Street experts added Apple (AAPL) into the mix. When the FAANG stocks start moving lower, the markets can't help but take notice... For example, my colleague Vic Lederman called out a slump for Apple [a few weeks ago](. As the tech giant's stock started selling off, the Power Gauge switched to a "neutral+" rating. The Power Gauge still views Apple the same way. And as I'll explain today, the system recently flipped its rating for another FAANG stock to "neutral+" as well... Recommended Links: [Prepare Now: A Massive Wave of Bankruptcies Is Coming]( In 2009, Joel Litman warned investors about 57 different companies that were about to go bankrupt – 50 collapsed within days. Now Litman is stepping forward with another big bankruptcy warning. If you own a single share of stock – much less a business... a mortgage... or a loan of any kind – this will affect you. [Click here to learn more](. [Top 5 A.I. Stocks to Invest in 2023]( Investors are getting very rich in A.I. stocks right now. And according to 50-year Wall Street legend Marc Chaikin, there are FIVE A.I. companies Wall Street is buying hand-over-fist that need to be on your radar immediately. [Click here for names and tickers](. You don't need to be Jim Cramer to realize that this group of stocks is a big deal... The FAANG stocks make up nearly 28% of the tech-heavy Nasdaq 100 Index. And the broad market S&P 500 Index has a roughly 17% weighting in these five companies. Last October, I wrote about [an upside change in one of the FAANG stocks]( – Netflix. At the time, I looked back one week to see the relative performance of the FAANG stocks... I noticed that Netflix was the top performer among its peers. And even better, the stock was also outperforming the S&P 500. So I highlighted it as a developing opportunity. Netflix closed around $268 per share on the day before I wrote about the stock. Today, it trades for about $370 per share. That's a roughly 38% gain in less than a full year. But today, the opposite is happening. You can see what I mean in the following graphic... [Chaikin PowerFeed] The graphic shows the one-month performance of all the FAANG stocks through midday trading yesterday. Netflix is down nearly 18%. All the others are doing better than that. In other words, Netflix is underperforming its peers today. The technical picture is dwindling as well... Our relative strength indicator is now in a negative trend. And the Chaikin Money Flow indicator is deep in the red. That tells us the "smart money" is running away from Netflix. Folks, the Power Gauge updates daily... It analyzes 20 different factors. It weighs each one to produce an overall rating for every stock in its universe. And our technical overlay alerts us if the time isn't right for a stock. The system is flashing a caution sign with this FAANG stock today. Be careful. Good investing, Pete Carmasino Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +0.06% 3 19 8 S&P 500 -0.04% 57 302 139 Nasdaq -0.30% 22 65 12 Small Caps +0.10% 329 1085 520 Bonds -0.49% — According to the Chaikin Power Bar, Large Cap stocks are more Bearish than Small Cap stocks. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Information Technology +1.08% Communication -0.36% Discretionary -0.40% Health Care -0.82% Real Estate -1.53% Materials -1.80% Financial -2.15% Industrials -2.45% Staples -2.85% Utilities -4.05% Energy -7.62% * * * * Industry Focus Retail Services 11 48 20 Over the past 6 months, the Retail subsector (XRT) has underperformed the S&P 500 by -9.54%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #13 of 21 subsectors and has moved down 3 slots over the past week. Indicative Stocks [rating] EYE National Vision Hold [rating] VVV Valvoline Inc. [rating] LESL Leslie's, Inc. * * * * Top Movers Gainers [rating] LW +8.02% [rating] MKTX +5.78% [rating] CSGP +4.00% [rating] EQT +3.63% [rating] NRG +3.28% Losers [rating] TAP -6.30% [rating] MDLZ -5.26% [rating] CLX -5.23% [rating] PEP -5.22% [rating] KO -4.83% * * * * Earnings Report Reporting Today Rating Before Open After Close No earnings reporting today. Earnings Surprises [rating] STZ Constellation Brands, Inc. Q2 $2.91 Beat by $0.08 [rating] LW Lamb Weston Holdings, Inc. Q1 $1.63 Beat by $0.55 [rating] CAG Conagra Brands, Inc. Q1 $0.66 Beat by $0.06 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. 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