In the three months since I unveiled this equal-weighted "anti-value" portfolio, the group -- which includes Amazon (AMZN)AMZN, Facebook (FB)FB, LinkedIn (LNKD)LNKD, Netflix (NFLX)NFLX
Salesforce.com (CRM)CRM and Twitter (TWTR)TWTR-- is down 3.6%. Meanwhile, despite a choppy ride, the S&P 500 is up 2.6%, and the Nasdaq Composite has risen 3.2%.
Salesforce.com (+7%), and Facebook (+18%) are the only stocks in positive territory during that period.
While three months is but a day to some investors, including yours truly, the point of this exercise is to track the path of the most exciting, well-covered, cult-like, priced-for-perfection stocks in the market today. These are the companies that are creating a buzz among investors and getting loads of press coverage.
They are considered must-own stocks by many, but high expectations have propelled them to lofty valuations. In some respects, it's reminiscent of the tech bubble. But, admittedly, these companies are of much higher quality than those of that era. They have rapidly accelerating revenue and decent balance sheets, and most are marginally profitable.
These are not the fly-by night companies with no revenue or prospects that we saw in 1999, but there's still a disconnect between their prices and valuation.
High expectations come with a price. While rapid revenue growth is exciting, there's little room for error. The Super Six trade for an average of 92 times 2015 analyst estimates.