FAANGM had its 3rd best month of the year in Nov 23, gaining +10.2%, as falling treasury yields (-60bps MoM), market expectations of quicker rate cuts, and continued positive earnings momentum drove equity markets higher. The Nasdaq was up +10.7%, while the S&P 500 was up +8.9%.
Gainers: NFLX (+15.1%) was the biggest gainer in the month, due to positive earnings momentum, and healthy user trends for its ad-supported subscription tier.
Laggards: GOOGL (+6.8%) was again the laggard as its price action looks to be consolidating after weak Cloud growth.
Meta Platforms Inc (META US, BUY, TP US$375)
Comment: No major news for META this month. However, digital ad spend trends for November look to have rebounded after a soft couple of months as advertisers look to cash in on Black Friday and Cyber Monday sales. This could point to better-than-expected 4Q23 results if this level of spending can sustain into December. META also looks to regain some lost market share vs competitors like TikTok and GOOGL.
Apple Inc (AAPL US, ACCUMULATE, TP US$194)
Comment: The softness in tech hardware remains AAPL’s largest near-term headwind, with sales of iPhones the only real positive among a sea of negatives. In the long-run, we do still expect earnings growth to be driven by higher-margin services revenue as AAPL increases monetisation of its user base.
Amazon.com Inc (AMZN US, BUY, TP US$190)
Comment: AMZN’s dedication to establish its independent delivery network appear to be yielding positive results, granting the company a substantial degree of control and competitiveness. Expanding into new domains like the online automotive business is also expected to bolster future margin growth, presenting a significant opportunity for AMZN.