Are FAANG Stocks Overhyped and Overpriced? | Phil Town

The FAANG stocks include; Facebook, Apple, Amazon, Netflix, and Google.

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[PhilTownRuleInvesting]

What interests you about FAANG stocks? Do you think FAANG stocks fit the Rule #1 style of investing?

[jwc]

Interesting timing. FAANG stocks took NOSEDIVE on Oct 10th, day before this video. Amazon lost 6% on single day, which is probably the biggest drop ever. I am long on A, A, G. I will check this video again in 2, 4, 6month and see how thing unfold. Very good video in very timely manner. THank you Phil.

[diogenes]

Good things come to those who wait & who know what they're doing...

[dezradeathkill]

I just increased my position in Facebook when the market corrected. It has amazing financials and in my opinion undervalued, largely because the scandals recently. I bought in at $180 before, I'd be foolish not to buy more at $155. Virtually no debt, high profits, solid estimated EPS growth, low P/E ratio. It's a value stock right now

[moviedude]

Always wondered why it wasn't FAAMNG - 'M' being Microsoft of course

[HamishHodder]

I've been talking alot about the FAANG stocks recently (on YT and the Podcast) and the reality is that they are great businesses but a whole lot of growth is already priced in which makes them quite risky.

[ResourceTalks]

*It really depends on the way you look at it. Some of those stocks are full of hidden value that the simple investor (me and you) doesn't have the ability to see. Even through analyses and what not. On the other hand if you were only to look at the P/E x P/B ratio you'd probably come out with a crazy high number suggesting them to be overpriced. But the thing is that you need to try and look into the future and try to figure out what those companies will be bringing home then and NOT right now.*

[investedmathacademyllc]

I was waiting for a video on FAANG! Thank you Phil

[lakmalantony]

Mr. Town, thank you so much for the great information you share. You have taught me so much and I appreciate it

[ResourceTalks]

*9:06** That's it right there! Look at it independently with your own future-focused mind, don't listen to people that ... ARE NOT YOU.*

[comeseetheviolenceinherent]

I feel like Netflix is going to be hurting over the next several years. They are losing contracts for shows while the companies owning those shows try their own streaming services. This competition and lack of quality shows will hurt Netflix going forward. I think they are doing a good job positioning themselves with original programs but I have to believe that it will never go back to its hay days.

[TheRealCaptainAwesome]

According to the math I've been taught through your books, they might be overvalued right now (like the rest of the market), but I also believe they are different than other companies. I don't want to lose any money however and will only buy when I can feel sure that the price has a great margin. And the 3 M's before also have to align for that matter! Thanks for being a great teacher Phil!

[kylecameron]

I think virtually every US based Stock is overpriced right now. If they shoot to the moon from here, then I think we would continue to say they're even more overpriced. There is soo much future profit built into the current price that I don't see how we, as individual investors can say we will do better by investing now. These are great companies with strong metrics, and will be excellent performers in the future I have no doubt, but I personally will be waiting for a sale.

[jinchoung]

I'm probably most bullish on amazon. it does so many things that are essential to modern life and does them well and I only see their pervasiveness expanding in the foreseeable future. considering that every media company and their mother is looking to create an online portal for their properties, I'm most bearish on netflix. and apple has a great company but they're the only company that would not affect my life at all if I had no access to their products.

[philipprichardt]

I recently checked out the competitors around Google and I was surprised it doesn't have the best search algorithm of all. Will that other algorithm breach its moat? It surely did in some countries.

[Motherearth]

No doubt tech companies will continue to grow. Technology and social media develop at high speed. They affect nearly every aspect in our lives. These companies definitely meet the criteria as a Rule one investing stocks. How fast and how much they will continue to grow is hard to predict, but we can get a pretty good idea buy learning about the company (figuring out the meaning, moat, management, and margin of safety).

[jasonandrews]

Given the future of A.I., I'm not sure these stocks are really overpriced at all. I haven't invested any of them yet, but I'm strongly considering Google, as it seems to be in a position to capitalize on future technology advancements.

[jekfire]

When I look at netflix's financial statment it scares the heck out of me... mostly when I get over the Cash flow statement part lol...

[jwolveee]

Look for a 20 - 30% correction coming down the pipe. Invest in TECL (3x tech ETF) for 1 year of massive gains. Then move position into VGT for low cost tech index fund - thank me latter.

[shubhendudeepak]

The stocks discussed are huge names.
I wouldn’t discourage anyone to buy these stocks at their current prices.
However, I’d want people to buy these stocks in a staggered way.

As in, if you intend to buy 100 stocks of Facebook, buy 10 today. Buy another 10 a month later. Another 10 a month later and so on.

That way, you’re average price is going to remain very close to the current trading price- protects you from any correction that these overpriced stocks might possibly see.


But, what if you don’t see a correction in the next 1 year? ;)
You’ll have to thank me, ha 😝