DIAMONDBACK ENERGY STOCK ANALYSIS: The Real FANG Stock
Today we will talk about FAANG and FANG. FAANG is $FB $AMZN $AAPL $NFLX and $GOOG . Yesterday, the US government decided to launch an antitrust probe against the big tech companies mainly Apple, Amazon, Facebook and Google. I'm going to make a video about that soon but for today, I just wanted to note that I don't think that any of these companies are going to be broken. These antitrust investigations happened in the past. In the 19th century, the government broke the railways; in 1913, John D. Rockefeller's Standard Oil; in 1933, investment banking had to be separated from retail banking and that's how the House of Morgan was broken in $JPM and $MS . Most recently, in 1984, the government broke $T and tried to break $MSFT in 2001 and failed. I believe that the government would want to put more regulations on these companies since they hold a lot of data. They are like utility companies. We cannot live without them. As far breaking them, I don't really think they are going to do this, especially not under a Trump administration. He is basing his success on the growing stock market and targeting the 5 largest companies in America won't be a good thing for the markets $NSDQ100 $SPX500 . Also, these investigations can take years and for the time being we have nothing to worry about. Which of these companies is most likely to be hit? $GOOG . The least likely to be hit? $AAPL
Now, let's talk about the other FANG . For some reason, DiamondBack Energy uses the ticker symbol $FANG . It is an $OIL and $NATGAS exploration company with exclusive operations in the Permian Basin. Recently, they have been making a lot of acquisitions. Last year alone, they bought 3 companies. It means that they are growing their proved reserves and also production at a fast rate. But it comes at a cost, they are spending a lot of money and so far they are free cash flow negative. They are clearly a growth stock sacrificing short-term profits for long-term gains. Is is a good investment? Yes but there are 3 companies in the Permian Basin which I believe are better, namely, $CXO $PE and $PXD .
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