FAANG shares regained their gains.
Facebook, Amazon, Apple, Netflix and Alphabet outperformed larger markets over the past month, regaining the lead in the S&P 500.
However, with the busy holiday season approaching, macroeconomic headwinds, labor shortages and supply chain constraints pose a greater threat to inventory.
Netflix, which recently led the group, may have a secret weapon to counter it, according to Craig Johnson, chief market technician at Piper Sandler. He said the company can avoid potential supply chain disruptions much better than others.
“I keep hearing about what a disaster this is going to be during the holiday season,” Johnson told CNBC’s “Trading Nation” Friday. “If you can’t create these holiday gifts, maybe a Netflix subscription is something that can be taken for granted.”
The charts suggest more benefit for Netflix, Johnson said, after its long period of consolidation.
“From what I’m seeing with the charts, I can actually see about an 18% upside here on this breakout,” he said.
In the same “Trading Nation” interview, Chad Morganlander, portfolio manager at Washington Crossing Advisors, chose Apple as the first name in the FAANG compartment. He said the shift from a revenue per unit model to a subscription model gives the company a more credible outlook.
“Our point of view is that, [over] Three to five years you should own it, ”he said. “During that time, you can buy this company and have less volatility than the S&P 500.”
Morganlander is wary of FAANG’s overall landscape, however, noting that it is overrated.
“Because these are very high quality companies we will definitely look to them, but they might not be the type of names you want to trade in for the short term,” he said. .