"FANG" is so yesterday.
The so-called FANG stocks – Facebook, Amazon, Netflix and Google-parent Alphabet – are surging this year, up a respective 58, 52, 58 and 32 percent and adding a combined $600 billion in market cap. Despite the monster gains, another group of tech stocks is still outperforming.
On a price return basis, Chinese internet stocks Sina, Tencent, Alibaba and Baidu are trouncing their U.S.-based rivals. So far this year Sina has rallied 84 percent, Tencent and Alibaba have more than doubled, up 127 percent and 117 percent, and Baidu has surged 50 percent. The four names have also added a combined market capitalization of roughly $600 billion this year.
At this juncture, some strategists and technical analysts see even further room to run despite their hefty gains this year.
"This group is in an outstanding technical position here," said Rich Ross, head of technical analysis at Evercore ISI.
Ross pointed out that on a year-to-date chart of Chinese e-commerce website Alibaba, the stock has managed to trade above its 50-day moving average for the bulk of this year. The longer-term chart is similarly bullish, Ross said Monday on Eyes On Events's "Trading Nation," pointing to a rounded base of support extending back three years around the $60 mark.
The substantial growth of internet users in China is key to driving these stocks in recent months, said Gina Sanchez, CEO of Chantico Global.
"At some point, that's going to exhaust itself, but we're not there yet. And that's one of the reasons why I think that this probably looks good from a technical position, because there's still a lot more to go," Sanchez said Monday on "Trading Nation."
She added: "These companies are huge, they're large, but they still don't have full market penetration in a massive, massive population. So I do actually think that there are probably more legs to this story."
On Tuesday, shares of Tencent hit a record high. Elsewhere in the space, the tech-heavy Nasdaq reached an all-time high.