5MRD

Analyst: This FAANG Stock is a 'Bargain in Big Tech'

Fund managers have been reducing their exposure to FANG stocks

Managing Editor
Apr 9, 2018 at 3:00 PM
facebook X logo linkedin


Alphabet Inc (NASDAQ:GOOGL) received some bullish analyst attention over the weekend, with Barron's calling the Google parent (subscription required) a "bargain in big tech," and noting that traders aren't pricing in the company's upbeat growth outlook on concern's Facebook's data scandal could result in increased government scrutiny. The expectations for stricter regulation is also one of the reasons given by fund managers who have recently reduced their exposure to troubled FANG stocks.

At last check, GOOGL stock was up 2.8% to trade at $1,037.25, climbing back above its 200-day moving average. After catching the stock's swift retreat from its Jan. 29 record high, this trendline has more recently served as a magnet since late March. However, the security is still trading 1.5% below its year-to-date breakeven level.

Despite the stock's choppy trading in recent months, analysts remain in Alphabet's corner. Of the 31 brokerages covering GOOGL, 26 rate it a "strong buy" or "buy." Furthermore, the stock's average 12-month price target of $1,278.81 represents a 23% premium to the stock's current perch.   

Short sellers, meanwhile, have been reducing their exposure to Alphabet during the FAANG stock's technical troubles. Short interest fell 10.2% in the two most recent reporting periods to 3.4 million shares. This represents just 0.6% of GOOGL's total available float, or 1.7 times the stock's average daily trading volume.

 

The $25K Day Trading Barrier is Gone

The long-standing Pattern Day Trader (PDT) rule that required many traders to maintain a $25,000 account balance is no longer standing in the way.

That means more traders can actively pursue short-term opportunities without the barrier that kept so many on the sidelines.

Now it's all about having the right strategy.

Dynamite Day Trading Signals helps you hit the ground running with up 2 options trade alerts per week, built to capture fast-moving opportunities.  

👉 Sign up now to receive the next trade

MR content page
 
 
 
 

Follow us on X, Follow us on Twitter