FAANG Stocks Continue to Feast Amid Global Trade Concerns – TheStreet.com

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Driven by their increasing domination and growing investor concerns about a global trade war, the top tech stocks continue to climb.

The FAANG stocks are all rising this year, with Netflix Inc. (NFLX) shares in the lead with a 69% jump just since the start of 2018. The collective valuations of American tech stocks (including Amazon.com Inc. (AMZN) ) have now topped $7 trillion, according to Bank of America Merrill Lynch.

Experts say these companies are barreling ahead thanks to their ubiquitous presence in the everyday lives of consumers and relative insulation from global trade concerns.

GBH Insights analyst Daniel Ives said that as the stocks continue rising, even skeptical investors are realizing how powerful each company has become within their respective industries, from e-commerce to video streaming to social media.

Even Facebook Inc. (FB) , still grappling with issues around fake news and slowing growth in North America, has gained almost 5% so far this year after rising more than 50% in 2017.

“[These have] been a worry for investors and I ultimately think its bark is worse than its bite,” Ives said.

Alphabet Inc. (GOOGL) and Apple Inc. (AAPL) both continue to see strong performance, gaining 11% and 7%, respectively, this year.

But the real leaders are Netflix and Amazon, the latter of which has risen 36% so far this year. With Netflix’s recent reported content deals with the Obamas and Amazon’s expansions of its assistant Alexa and smart home services, GBH’s Ives said neither company shows any sign of slowing down.

The FAANG stocks continue to benefit from the fact that “they’ve become Internet staples, interwoven into the fabric of the consumer’s lifestyle,” Ives said.

“When you have companies with this level of influence and ability to innovate, you can see why their stocks [continue to rise],” Creative Strategies analyst Tim Bajarin said. “They’re strong and stabilized and poised for growth.”

Ives said that investors are also likely drawn to the stocks’ “relative insulation” from a potential global trade war in light of Trump’s recent authorization of tariffs on imported steel and aluminum.

Bajarin said a bigger potential threat to the tech giants than taxes on foreign materials would be regulation, “but as long as they continue to innovate, [investors] are expecting them to grow.”

On Monday afternoon, Amazon shares increased 1.1% to $1,595.50, while Apple stock rose 0.9% to $181.52. Alphabet shares were up 0.6% to $1,167.45, while Facebook stock dipped 0.2% to $184.83 and Netflix fell 3.4% to $320.04.

Facebook, Apple, Amazon and Alphabet are holdings in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells FB, AAPL, AMZN or GOOGL? Learn more no