Facebook, Amazon And Cisco Fail To Join The “New Highs” NASDAQ Rally

You would think that certain highly recognizable big name NASDAQ stocks mentioned every day in the financial media would be doing better price-wise than they have been lately.

While stock market indices like the Standard and Poor’s 500, the NASDAQ Composite and the Dow Jones Industrial Average just keep on hitting new highs, 3 widely-followed favorites can’t quite keep up.

Facebook, Amazon and Cisco Systems are not making new high prices. Chief Executive Officers of each company – Mark Zuckerberg, Jeff Bezos and Chuck Robbins are profiled and quoted regularly but I haven’t seen anything they’ve said lately about why they might be under-performing the broad indices.

Here’s the daily price chart of the NASDAQ Composite:

The broad index surpassed the July peak in early November and this week climbed to even higher highs. Generally speaking, this type of breakout signifies confidence in the ability of the economy to sustain growth.

That’s why it’s peculiar to see such a widely followed name as Facebook unable to continue higher with the rest of the crowd. Here’s the daily price chart for Mark Zuckerberg’s huge data-collection operation:

This week’s price is obviously much lower than the July peak. The red circled blankness indicates how much further Facebook needs to go to meet the previous high. It’s quite a divergence from such a high profile NASDAQ stock.

Here’s the daily chart of Amazon:

You can clearly make out how the stock is nowhere near a new high – again, significantly diverging from the wider NASDAQ group of stocks. This week’s closing price is at the bottom of the red circled area – it would have to rise to the top of that circle to meet the July peak.

Here’s the daily chart for Cisco Systems:

The price high came in July. This week, while the NASDAQ Composite hit widely publicized higher highs, this stock did not even come close. The extent of Cisco’s decline from the summertime peak is apparent in the big red circle of lack of gain.

That such well regarded big names are failing to keep up with the broader index might be a problem for continued upward movement in the index. From the standpoint of simple price chart analysis, you would want such stocks to be leading, not falling behind.

That said, it is true that these stocks could now begin to turn around and rally and that the NASDAQ could continue to rise – anything is possible. It’s the stock market. Good luck.

Stats courtesy of FinViz.com.

I do not hold positions in these investments. No recommendations are made one way or the other.  If you’re an investor, you’d want to look much deeper into each of these situations. You can lose money trading or investing in stocks and other instruments. Always do your own independent research, due diligence and seek professional advice from a licensed investment advisor.


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