MicroSectors FANG+ ETN [FNGS] Stock Forecast

The 'magnificent seven' tech stocks, including Apple, Microsoft, Google, Amazon, Tesla, Meta, and Nvidia, have significantly outperformed the market in 2023, with the MicroSectors FANG+™ Exchange Traded Notes up over 63%. The concentration of market gains in these few names indicates an unhealthy market. Investors should consider selling FNGS now, as poor market breadth and elevated interest rates could lead to a risk-off move in the near future.

The technology sector has been at the forefront of the stock market rally in May, primarily thanks to the artificial intelligence (AI) mania.

Wall Street has delivered a muted performance in May while debt-deal was on.

For investors seeking momentum, MicroSectors FANG+ ETN FNGS is probably on radar. The fund just hit a 52-week high and is up 55% from its 52-week low price of $17.82/share.

With the U.S. inflation cooling and the possibility of the Federal Reserve slowing or pausing rate hikes, the stage is set for growth ETF investing.

Google parent Alphabet (GOOGL) reported solid first-quarter 2023 results, topping both revenue and earnings estimates. Investors should tap the strength with ETFs with a substantial allocation to Alphabet.

Netflix saw no earnings estimate revision over the past 30 days for the to-be-reported quarter. It's earnings surprise history is impressive.

The MicroSectors FANG+ Exchange Traded Notes are linked to the performance of the NYSE FANG+ Index. FNGS gives you equal weighted exposure to the 10 largest technology and consumer discretionary equities (basically the FAANG cohort plus a couple of additions).

2023 is shaping up to be a very different year than 2022.

Though the social media giant reported its third consecutive quarterly drop in revenues, it provided an upbeat revenue forecast signaling a rebound in demand for digital ads after months of weak sales.