The FAANG stocks appear to be facing forward again.
Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN) , Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and Alphabet (NASDAQ:GOOGL) have outperformed the broader markets over the past month, retaking leadership of the S&P 500.
However, as the busy holiday season approaches, macro headwinds, labour shortages and supply chain constraints pose major threats to the stocks.
Netflix, which has recently led the group, could have a secret weapon to counter this, according to Craig Johnson, chief market technician at Piper Sandler. He said the company can avoid the potential supply chain disruptions far better than the rest.
"I keep hearing about how much of a disaster it’s going to be for the holiday season," Johnson told the media on Friday. "If you can’t get those holiday gifts put together, perhaps maybe a subscription to Netflix is something that could be given."
The charts also suggest more upside for Netflix, Johnson said, following its lengthy stretch of consolidation.
Chad Morganlander, portfolio manager at Washington Crossing Advisors, picked Apple as the top name in the FAANG bucket. He told reporters its shift from a per-unit sales revenue model to a subscription model gives the company a more reliable outlook.
"Our viewpoint is that, [over] three to five years, you should be owning this," he said. "In that period of time, you could be buying this company and have less volatility than the S&P 500."
NFLX shares popped $12.66, or 2.1%, to $603.19.
