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FAANG Stocks

 

FAANG Stocks

What is FAANG Stocks?

It’s hard to talk about the general stock market without mentioning one or more FAANG stocks. In this article we will learn about the FAANG stocks definition and its performance. FAANG acronym is referring to five most prominent companies in the tech sector of America. The FAANG stands for the following companies.
Here is the FAANG companies list
F- Facebook
A- Amazon
A- Apple
N- Netflix
G- Google

As you must have assumed from the names, all these companies happen to be the dominating names in their respective area.

Origin of FAANG Tech

Many of you think- where did FAANG originate? The term “FAANG” was introduced by the host of Mad Money “Jim Cramer” in 2013, while praising these companies as being “totally dominant in the market.” Later in 2017, Apple joined FAANG stocks companies to rename the term FANG as FAANG.

The FAANG market cap is approx. trillions of dollars, and they alone are capable to influence the stock market. If you are talk about electronic devices, data, shopping, entertainment, or socializing then FAANG companies are the ones that have laid the foundation of technology across the world.

Importance of FAANG
Companies like FAANG are the most dominant stocks, not only in the US market but across the world, as the products and services of these companies are used worldwide and have become the most important part of human’s lives. Together, their market capitalization crosses $4 trillion, which is more than the GDP of most countries.

As every investor should know, past results don’t guarantee 100 % success, indeed, the FAANG stocks and Microsoft all underperformed the S&P 500 in the first half of 2022. All FAANG companies and Microsoft have intangible assets that should make them more profitable than their rivals. Apple is one of the few companies that makes both hardware and software for its devices. Investing in FAANG stocks can be done in two ways-through mutual funds or index funds.

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