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Analysts: Record Highs Ahead for These 3 FAANG Stocks

GOOGL options traders have been picking up puts at a faster-than-usual clip

Managing Editor
Aug 8, 2017 at 10:14 AM
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Analysts are weighing in on FAANG stocks Netflix, Inc. (NASDAQ:NFLX), Alphabet Inc (NASDAQ:GOOGL), and Amazon.com, Inc. (NASDAQ:AMZN). Here's a quick roundup of today's bullish brokerage notes on shares of NFLX, GOOGL, and AMZN.

Analyst Sees New Highs Queued Up For Netflix

Netflix stock is up 0.2% to trade at $181.67, after Piper Jaffray raised its price target to $215 from $198 -- in uncharted territory -- and increased its subscriber estimates, while maintaining its "overweight" rating on the shares. Netflix stock has tacked on 90% year-over-year, and is fresh off a July 21 all-time high of $191.50. Analysts remain firmly bullish on NFLX shares. Of the 30 brokerages covering Netflix, 19 rate it a "buy" or better.

Mizuho Backs Alphabet With 'Buy' Rating

Alphabet stock is trading 0.2% lower at $943.58, as traders eye the drama surrounding the firing of a Google engineer. Nevertheless, Mizuho reinstated its "buy" rating on GOOGL stock, while setting its price target to the lofty $1,220 -- in record-high territory. GOOGL hasn't closed above the $1,000 level since early June, just after it shot to a record high of $1,008.61. While the shares surpassed $1K in intraday trading again on July 24, the stock suffered a bear gap in the subsequent session after a lackluster Alphabet earnings report.

In the options pits, traders have been showing a preference toward puts lately. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows GOOGL with a 10-day put/call volume ratio of 0.98, which ranks 4 percentage points from a 52-week high.

Analyst Expects AMZN to Assail New Heights

Amazon stock is trading 0.3% lower at $989.75, shrugging off a reinstated "buy" rating and $1,250 price target -- again in uncharted territory -- from Mizuho. Amazon stock shot to a record high of $1,083.31 on July 27, but similar to fellow FAANG stock Alphabet, AMZN has pulled back after earnings.

Options buyers are betting on more upside, though. The equity's 10-day call/put volume ratio on the ISE, CBOE, and PHLX stands at 1.13 -- in the 76th percentile of its annual range, pointing to a healthier-than-usual appetite for long calls over puts.
 

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