How a new crop of tech IPOs may steal sentiment from FAANG stocks

Lyft, Uber, Pinterest and Airbnb will be hot stocks — Wall Street is practically guaranteeing it

Are you an investor who likes to get ahead of the curve? If yes, you need to know the trick that LUPA stocks (more on those later) are going to play on your FAANG stocks. Let’s explore the issue with the help of a chart.

For the chart comparing S&P 500 ETF SPY, with the FAANGs: Facebook FB, Apple AAPL, Amazon AMZN, Netflix NFLX, and Google GOOG,
Please note the following:

• The stock market has staged a strong rally in 2019. Please see “The Dow Jones Industrial Average, at the current pace, is on track to hit 30,000 in April.”

• Until late last year, FAANG stocks were the leaders in outperforming the market.

• The chart shows that former champions Apple and Amazon are now drastically underperforming.

• The chart shows that Google (which today is known as Alphabet) and Facebook are also underperforming.

• Netflix is the only FAANG stock that has outperformed the market, but only by a small amount.

• Why aren’t these generals of the market performing well? Could it be that the smart money knows the trick that LUPA stocks are about to play on those stocks? Please see If you own Apple, Amazon, Facebook or AMD, look out below.

Ask Arora: Nigam Arora answers your questions about investing in stocks, ETFs, bonds, gold and silver, oil and currencies. Have a question? Send it to Nigam Arora.

‘LUPA’
The biggest crop of new IPOs since 1999 is coming your way this year. Do you recall what happened in the year 2000? The market crashed. Many aggressive technology investors lost 90% of their investments.

Prominent among the new potential IPOs are Lyft, Uber, Pinterest and Airbnb; hence the acronym, LUPA.

Going forward, LUPA is a convenient acronym to describe this new big crop of IPOs.

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