As the earnings season starts to wind down, it seems the big message from the FAANG stocks is that, earnings projections be damned, this market wants to go up. Just look at what we’ve seen from the components:
- FB: reported after the close on the 30th; company clearly has turned itself around and price exploded nearly 20% the next day;
- AMZN: reported after the close on the 31st; stock got absolutely reamed, losing nearly $100 the next day; market didn’t budge;
- AAPL: reported after the close on the 29th; in spite of softening sales and weakness from China, stock skyrocketed the next day;
- NFLX: reported after the close on the 17th; stock slumped for a few days but has since recovered and is now rumored to be a buyout candidate from fellow FAANG member AAPL;
- GOOGL: reported after yesterday’s close...and got smacked all over the room..
..but the NASDAQ Composite couldn’t care less:
So in case anyone is wondering why, as usual for almost every day since December 26th equities are up across the board, the answer is a simple one and can be used for the foreseeable future: because they didn’t see any reason NOT to be.