With an outstanding market valuation of $2.78 trillion, Apple is a stock mover that affects the broader market indexes.
FAANG stocks were among the stocks that are gradually rebounding. The tech stocks include Meta Platforms, formerly Facebook (NASDAQ: FB), Amazon.com Inc (NASDAQ: AAPL), Netflix Inc (NASDAQ: NFLX), and Google LLC (NASDAQ: GOOGL) increase a minimum of 1% during trading hours on the 21st of December. After the Facebook announcement that it was rebranding to Meta, there were several tweets stating that the acronym FAANG group has now become MAANG.
The Stock to Watch amid FAANG Stocks Growth
As FAANG stocks increase, a chart analyst has highlighted a particular stock to watch out for as the new year approaches. According to the head of technical analysis at Oppenheimer Ari Wald, the second “A” in FAANG should be paid attention to. Wald noted that the Apple stock requires closer attention among the other FAANG stocks. Speaking to CNBC’s Trading Nation on the 20th of December, the technical analyst said:
“That’s one of the more important ones to watch. I think this setback in Apple has really weighed on the Nasdaq overall, and it’s caused this flight to safety. I don’t think it’s really been about any sort of broader rotation than that. Just a pure move toward safety areas of the market.”
With an outstanding market valuation of $2.78 trillion, Apple is a stock mover that affects the broader market indexes. After its mid-December peak, the company has dropped about 5%. In a statement, Wald said that a few key support levels could serve as a buffer in case of more losses. Specifically, he noted the first downside at $166 and a second at $157. Apple stock is currently at $172.38 at the pre-market trading. The tech giant is down 0.35% over its previous close of $172.99.
Wald continued in his explanation, noting:
“The reason why we like it for the long term, and why I think these higher-growth companies continue to receive a scarcity premium in this low-growth recovery here is that relative to Nasdaq, relative to its peers, Apple is resuming its 2020 breakout above eight-year relative resistance. I think that bodes well for additional outperformance looking out into the new year.”
Hedge Fund Executive Says Tech Stocks Will Outperform
On the other hand, the managing director at Vios Advisors at Rockefeller Capital, Michael Bapis, advised holding tight in chase of volatility in the FAANG stocks. In his speech, he stated that quality outperforms when there is volatility. In his opinion, technology will consistently outperform in the current tech revolution. According to Bapis, the revolution started 10 years ago and will continue over the next 30 years. He added that “he wouldn’t get caught up in the panic of the trade of uncertainty.”
Except for a less than 1% decline Apple recorded in the last five days, the tech company has been surging.