As long as the earnings continue to grow, the stock follows right along. Facebook (FB), Netflix (NFLX) and Amazon (AMZN) are good recent examples of that. When earnings growth begins to slow, so does the stock price appreciation.
Many traders and investors looking at the extreme volatility from “FANG” stocks: Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Google (GOOGL) are tempted to find what appears to be visually appealing shorting opportunities. However, as is often the case, looks can be deceiving.