In the spirit of Mark Twain, the FANG stocks have roared back to life, definitively stating to the market that the reports of their demise have been greatly exaggerated.  On an equal-weighted basis (chart below), an index of the four FANG stocks (Facebook, Amazon.com, Netflix, and Google-parent Alphabet) has now completely erased its 8% pullback from its 6/8 high and is now back at new highs.  Over the last year alone, these four stocks are up an average of 45.7%.  Whenever there is optimism that the Trump Administration will get something passed, high growth tech stocks start to lose momentum, but once it looks like more of the same old Washington gridlock, high growth stocks like FANG really run.

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A lot of today’s strength in the performance of the FANG stocks on an equal-weighted basis is the fact that shares of Netflix (NFLX) are up over 12% following its strong earnings report after the close last night.  NFLX has a much smaller market cap than the three other stocks that make up the FANG group, but even on a market cap weighted basis, the four FANG stocks are still at new highs.  As shown below, a market cap weighted index of the four stocks has also more than erased what in this case was a 7% pullback and is also trading at new highs today.  So much for the death of FANG.

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