Daniel Sparks, a Motley Fools analyst writes that, "these stocks' big gains in 2017 extend an extraordinary track record for each in recent years. Facebook's, Amazon's, Netflix's, and Alphabet's stock prices are up about 150%, 220%, 220%, and 80%, respectively, compared to three years ago. During this same period, the S&P 500 increased just 27%." (Daniel Sparks, "Fangs Stocks Are Crushing it").
Have the stock prices of these companies gotten to far ahead of their earnings growth? We will see, in the next round of earnings reports due out in July. It may be a good idea for investors to take a look at other companies in other industries that may not have participated in the overall market surge since the beginning of the year. In addition, now may be good time to take a little money of the table.
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Technology stocks have delivered good returns so far this year with the FANG stocks (Facebook, Amazon, Netflix, and Google delivering very strong returns. Year to date, Facebook is up 30.46%, Amazon is up 27.64%, Netflix is up 29.18% and Alphabet is up 21.14%. In comparison, the S&P 500 Index is only up 8.92% year-to-date this year.
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