State of Big Tech Stocks Now
The stock markets closed negative again yesterday except for the Russell 2000 that eked out a small gain and the Emerging Markets (EEM) that was the big winner. The Volatility Index VIX came down -5% yesterday which was good news of course. But the VIX level is still very elevated at over 29.
I wanted to take a look at the Big Tech stocks and where they are at this time. I use 2 instruments to review them. These are FNGU and BULZ.
Here are the FNGU components:
FNGU is a great instrument for a leveraged play on Big Tech stocks. It is 3x leverage of 10 stocks as listed above. I have sorted them by how far they have fallen from their 52-week high.
As expected, FNGU itself has dropped the hardest being 3x leveraged as the leverage works both ways up and down. Also, as expected AAPL and GOOGL have fallen the least. Couple of interesting plays for me are NVDA and FB. Both have fallen -50% from their highs. NVDA has a PE of 25 and FB has a PE of 13 both of which I would say are attractive. NVDA has a projected earnings growth rate of 36% and FB growth projections are 19% (note these growth rates are not depicted in the above chart). Both look attractive to me from a long-term standpoint (at least 6 months out).
Here is BULZ:
Here too BULZ itself is the biggest loser. Interesting for me here are the semiconductors. We looked at NVDA above, but BULZ also has AMD, MU and INTC within the consolidated index. Looking at all of them closer:
All of them except INTC look good.
One can play with the individual stocks, or one can play with the leveraged FNGU and BULZ. The big difference between FNGU and BULZ is that FNGU has couple of Chinese stock exposure. BULZ on the other hand has a strong semiconductor exposure.
I will wait for the trends on FNGU and BULZ to turn bullish and then get in on them. I will also likely make some long-term option best on NVDA, FB, AMD and MU.