FAANGM lagged the S&P 500 in December, returning 3.1% vs 5.6% respectively. Amazon and Netflix were the laggards, declining 3.2% and 2.5%. Outpeformers were Apple and Meta, gaining 7.8% and 8.3%. Apple benefited from a successful appeal in the US appeals court for a delay in the App Store payment ruling which gave users the option to pay outside the App Store. Meta saw strong holiday demand for its Oculus products, with much talk focusing around its potential metaverse.
Meta Platforms Inc (FB US, BUY, TP US$424)
Apple Inc (AAPL US, BUY, TP US$187)
Amazon Inc (AMZN US, BUY, TP US$4,157)
Netflix Inc (NFLX US, ACCUMULATE, TP US$724)
Alphabet Inc (GOOGL US, ACCUMULATE, TP US$3,380)
Microsoft Corp (MSFT US, BUY, TP US$405)
We are OVERWEIGHT on the FAANGM as secular tailwinds remain in tact. Our preference is Amazon as pressure on its share price lifts from the eventual easing of freight costs and supply constraints, as well as easier comparables this year vs 2021. We are cautious about regulatory headwinds, and we think Meta is of more concern.