This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Days of Reckoning for the Super Six Momentum Stocks

NEW YORK (TheStreet) -- Cracks in the "Super Six," a group of highflying and arguably overpriced stocks, are growing.

Year to date, my equal-weighted "anti-value" portfolio -- comprised of Amazon (AMZN - Get Report), Facebook (FB - Get Report), LinkedIn (LNKD), Netflix (NFLX), (CRM) and Twitter (TWTR) -- is down nearly 20%, with almost all of that damage having been done in the past five weeks.

Meanwhile, during the same period, the S&P 500 is up 2%, and the Nasdaq Composite index has fallen 1.7%.

Twitter has suffered the most damage year to date, down 40%. LinkedIn (-29%) and Amazon (-25%) are not far behind. Facebook (+3%) is the only one of the six in positive territory year to date.

The lesson is clear: Valuation matters. Investors have grown skittish about paying a premium price for shiny objects, and this is the result. It might just be the beginning. There's more potential downside to the Super Six. It is still, in my view, an expensive portfolio.

I don't, however, buy into the notion that this is the beginning of another "tech wreck." It is more likely a shift from the highflying growth companies into those that offer compelling value.

Apple (AAPL), at at 12.5 times 2015 estimated earnings and with a war chest of cash and securities, is an example the type of company I am referring to.

Further down the market-capitalization spectrum, there are also opportunities. My "BITES" portfolio, comprised of five smaller tech related value companies, is up about 4% year to date.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AMZN $380.16 0.00%
FB $78.97 0.00%
AAPL $128.46 0.00%
GOOG $558.40 0.00%
TSLA $203.34 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs