Insights

Big Growth Stocks Roar Back as Earnings Approach

Companies like Netflix (NFLX), Incyte (INCY), Broadcom (AVGO), Facebook (FB) and Alphabet (GOOGL) are leading the S&P 500 higher today as investors return to the most important part of the market.

Several things seem to be happening all at once.

First, NFLX lit a fire of enthusiasm by announcing 13-18 percent price increases for U.S. subscribers. That followed bullish analyst calls by Goldman Sachs and UBS earlier in the year. It also comes just two days before the streaming-video giant releases fourth-quarter results.

NFLX was the first major growth name to 
stumble last year, with tepid user growth triggering a bearish slide in early July. Investors mostly shrugged off good numbers in October that relied on overseas growth. Today’s price-increase announcement eases fears about the U.S. business. Sure, the domestic market may be near saturation in sheer headcount. But now that management is squeezing more revenue from each user, the growth story is back.

Second, money continues to pour into biotechnology stocks as investors look for more takeovers in the space. That’s lifting INCY and Nektar Therapeutics (NKTR) today. Stay tuned for our special report on biotechs tomorrow.

Third, a ton of cash is on the sidelines after investors dumped stocks in December. CNBC reported yesterday that money-market fund assets spiked to $3.066 trillion – the highest in almost eight years.

That raises two questions: Is there anyone left to sell? And, does it make sense to be underweight equities in the middle of an economic expansion, a few weeks before earnings?

Speaking of earnings, here are some big announcements to watch:

・January 17: NFLX

・January 23: Xilinx (XLNX)

・January 24: Intel (INTC)

・January 29: Apple (AAPL)

・January 30: FB, Alibaba (BABA), Visa (V), Qualcomm (QCOM), PayPal (PYPL).

・February 4: GOOGL

Finally, remember that new growth stocks continue to surface. Aside from 
names identified on Market Insights, the S&P 500 gained new members last year including Fortinet (FTNT), Arista Networks (ANET) and heart-device maker Abiomed (ABMD).

In conclusion, investors are looking past risks potentially resulting from the government shutdown and focusing on the positive. Right now, that means a return to one-time market leaders at discounted prices.


This article was written by David Russell, TradeStation Securities, Inc., part of the Monex Group Inc, published on 15/01/2019.

Risk Disclaimer: The information above is of general nature only and does not take into account your objectives, financial situation or investment needs. Prior to you make an investment decision, please make sure you carefully read and fully understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other relevant documents that you can obtain from this website. Monex Securities Australia Pty Ltd (AFSL No. 363972; ABN 84 142 210 179) is the Financial services provider. Financial products trading carries risks and may not be suitable for all investors. You are strongly recommended to seek independent financial advice before making any investment decisions.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!