This One-Time Explosive Tech Stock Is Sitting Out the Latest Bull Market Charge

Date | 19-01-2018 - 03:38 PM Article Type | Stock Markets Region | United States

Facebook shares are sitting out the latest charge higher in the bull market. The complete opposite has happened for names like Netflix.


ByBrian Sozzi


The Dow has smashed through 26,000. Investors are showing no signs of slowing their purchases of stocks. And Corporate America is tripping over themselves to raise profit forecasts following the new tax law passing. 

Then there is Facebook (FB).

Shares of the social media giant have dived about 1% over the last month. The performance stands in stark contrast to Facebook's friends that make up the "FAANG" stock trading acronym. 

One-Month Performance

  • Apple +2%
  • Amazon +9%
  • Netflix +15%
  • Alphabet +5%

Investors have clearly been spooked by Facebook's planned changes to its news feed.

The first thought all Facebook bulls must have is that the platform will make fewer profits as it emphasizes posts from friends instead of media and big brands. Perhaps under these changes big brands like Procter & Gamble (PG)  and PepsiCo (PEP)  throw fewer ad dollars toward Facebook because eyeballs may not be on the platform to the same degree.

The second issue here is longer-term oriented. With founder Mark Zuckerberg on a mission to return Facebook to its roots, does that mission mean more moves in 2018 and 2019 that could temper profits? And if so, do those changes turn users off and send them onto other social media platforms like Snap Inc. (SNAP) and Twitter (TWTR)?

These are all reasonable questions to ask about a company that has seen its stock surge 40% over the last year. Is the top in on Facebook's stock? Could be.

Author: Heng V. Mony
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