Facebook’s strong earnings report and the upcoming Amazon results on Thursday afternoon may turn around the “FANG” basket and the market after an awful start this year.
FANG is an acronym created by CNBC’s Jim Cramer for the top-performing technology stocks — Facebook, Amazon.com, Netflix andAlphabet (formerly Google).
All four stocks are down more than 7 percent this year as of Wednesday’s market close. Netflix is faring worst among them, down 20 percent this year. Other macro news may grab the headlines, but profit-taking by investors in these 2015 winners are one of the primary reasons the market is failing this year.
Facebook shares surged 12 percent in after-hours trading Wednesday after the company reported earnings per share of 79 cents, much higher than the 68 cents estimate by FactSet. The company continues to find success in monetizing and expanding its mobile ad business.
Using Kensho, a quantitative tool used by hedge funds, CNBC Pro looked at the market’s performance when FANG stocks traded down on any given trading day in 2015 and 2016.
Here are the stats showing just how much FANG stocks dictated the direction of trading for the overall market the last 12 months.