Morgan Stanley Backs 3 FAANG Stocks For 2019

Morgan Stanley said FB, AMZN, and GOOGL were its top ideas from the sector for 2019

Josh Selway
Dec 20, 2018 at 10:17 AM
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Despite the huge declines in their share prices, many analysts have stuck behind FAANG stocks. Just this morning, Morgan Stanley named Facebook, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc (NASDAQ:GOOGL) its top picks from the internet space for 2019. The brokerage firm suggested that digital advertising won't be negatively effected by a slowdown in the broader U.S. economy, saying specifically, "Despite macro clouds, we remain confident in strong U.S. ad outlook."

For FB stock in particular, MS lifted its price target to $175 from $170. The shares struggled yesterday amid yet another round of bad news, but are marginally higher today -- up 0.9% to trade at $134.51. Even with the small increase, the security is dangerously close to its 52-week low of $126.85 from Nov. 20.

AMZN is managing to trade higher so far today, last seen up 0.6% at $1,503.33. The $1,500 region has been a short-term technical floor for the stock since late October, helping the equity maintain a roughly 28% lead in 2018. Still, some options traders earlier this week were betting on major losses for the e-commerce concern.

GOOGL so far is up 0.3% to trade at $1,038.50, still holding near the bottom of the $1,000-$1,120 area that it's chopped inside since late October. This puts the search giant on pace to close 2018 just below breakeven, with the 200-day moving average putting a firm lid on a breakout attempt earlier this month.

 


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