Netflix shows that it’s not enough to beat earnings. The media giant beat 19Q2 earnings with an EPS of $0.60 vs. the $0.56 per share estimate; however, failed to deliver on a key performance indicator. Net subscriber additions for the quarter of 2,699 million missed expectations by 47.2%. As a result, Netflix shares have fallen 16%. Now that the stage has been set, investors eagerly await the fate of the remaining members of F.A.N.G., Facebook Inc (FB.O), Amazon.com Inc (AMZN.O), and Alphabet Inc (GOOGL.O, GOOG.O), which start to report this afternoon with Facebook. Exhibit 1: F.A.N.G. YoY Growth Rates Analysts

FANG turmoil: a trigger for rebalancing out of the US? On a 12m forward price-to-earnings basis, US equity market valuations are almost 30% more expensive than global peers. In a recent research note, Fathom argued that the equity market may be in the midst of a rebalancing act, with investors selling expensive US growth stocks in favor of more attractively priced foreign ones. This would be a similar trend to the one that happened from 2006 to 2008 in the previous market cycle. Refresh the chart in your browser | Edit chart in Datastream ______________________________________________________________________ Thomson Reuters Datastream Financial time series database