Investment bank JPMorgan (NYSE: JPM) has started slashing prices left and right with the more recent ones aimed at FAANG stocks.
Namely, the firm cut Meta Platform (NASDAQ: META) to $225 from $275, Netflix (NASDAQ: NFLX) to $230 from $300, and Amazon (NASDAQ: AMZN) to $175 from $200.
Meanwhile, the U.S. dollar slipped lower against its peers, oil prices jumped and investors received positive news from China related to Covid travel restrictions as market participants are looking for sparks to ignite a possible rally.
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Further, Central Banks worldwide promised to lift interest rates to fight inflation, withdraw liquidity to decrease demand, and tame consumer price increases, which in turn hit growth metrics and stoked recession fears.
All of these developments possibly point to the JPMorgan price cuts they just announced for the growth stocks.
META chart and analysis
Currently, the shares are trading below all daily Simple Moving Averages (SMAs), on slightly elevated trading volumes compared to the averages. It looks like the new trading range is between $173 and $154 with the price action far away from the February highs at around $320 per share.
Currently, TipRanks analysts rate the shares a moderate buy, predicting that in the next 12 months, the average price will be $271, which is 68.66% higher than the current trading price of $160.68.
NFLX chart and analysis
Meanwhile, after the company lost over 50% of its market capitalization, the shares jumped up 10% on news of a new series fueling interest among users; however, the stock lost all those short-term gains and then some. Currently, shares are below all daily SMAs, staying between the $162 and $202 range.
Similarly, analysts rate the shares a hold, predicting that the average price of shares could reach in the next 12 months to be $280.42, which is 56.14% higher than the current price of $179.60.
AMZN chart and analysis
Despite closing slightly below the 20-day SMA in the last session, shares have yet to break the support line of $101, possibly indicating that the trading range between $128 and $101 will still hold and the shares will stay range-bound for some time.
Further, Tipranks analysts have a rating consensus of a strong buy on the shares. Moreover, for the next 12 months, the average price prediction is for the shares to reach $176.90, 64.71% higher than the current trading price of $107.40.
Finally, the new downgrades are in line with market expectations for growth stocks, which have been out of favor for the better part of 2022. Investors should track the broader market and global macro trends before deciding whether they want to invest in growth stocks at this moment as the three above are down YTD by 52%, 69%, and 36%, respectively.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
