Tesla, Amazon, Netflix headed for a 1-day 10% drop: Marc Faber

By StocksFOXBusiness

Trump provides 'great entertainment' overseas, Marc Faber says

'The Gloom, Boom & Doom Report' editor Marc Faber discusses why Amazon, Netflix and Tesla shares will each drop 10 percent in a single trading session, and his views on President Trump.

'The Gloom, Boom & Doom Report' editor Marc Faber discussed why he had a bearish outlook for tech stocks, predicting a one trading day 10 percent drop for Tesla (NASDAQ:TSLA), Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX), in particular.

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Faber supported his theory by recounting market history, telling the FOX Business Network’s Stuart Varney, “I experienced the ’87 crash when not one or two stocks dropped 10 percent in a day, but the whole market dropped 21 percent in one day.  And other markets overseas didn’t even open, they opened 50 percent lower.  Stock markets go up and up and up and when they go down, they go down more rapidly than they went up.”

According to Faber, some of the more popular stocks to own were hurt more by a bullish market.

“And when I started to work, we just hit the ’73-’74 bear market. I can tell you, the Polaroids and the Kodaks, the so-called nifty, the most favorite stocks that everybody owned, they dropped day by day by 90 percent from peak to trough.”

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Faber pointed to Amazon’s valuation as an example, saying “Well, simply because the valuations are very high…I cannot tell, should Amazon sell at 100 times earnings? 200 times or twenty times? That we don’t know, that will depend on many factors in the world that are outside the influence of Amazon’s direct business.”

But Faber’s concerns about over-valuation applied to the overall sector as well.  When Varney summarized Faber’s perspective, “So Marc Faber says that these tech companies are wildly overvalued and they’re due for a fall,” Faber responded, “Correct.”

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