FAANG is the acronym referring to the stocks of Tech giants—Facebook, Amazon, Apple, Netflix and Google. These five companies are considered to be the greatest and best-performing tech companies in the market. Check out more to know 10 things about FAANG – World famous tech companies.
What Is FAANG?
FAANG refers to the stocks of the most prominent companies in the stock market. The five FAANG stocks have a combined market capitalization of nearly $7.1 trillion as of August 2021. Companies’ growth is attributed to influential investors like Berkshire Hathaway.
Origin of FAANG
Jim Cramer coined the FAANG acronym in 2013, referencing the financial TV host and The Street.com co-founder.
When was Netflix Launched?
- A. 1990
- B. 1999
- C. 1997
- D. 2002
What is Special About FAANG?
FAANG’s performance in the stock market is very important to be noted as it can sway the entire market with its stock level – it comprises 15% of the Standard & Poor’s 500. (an index used by US’s largest public companies)
How to invest in FAANG stocks?
One can invest in FAANG in several ways. Investment can be done through Individual Stocks, Tech Funds and Index Funds.
- Individual Stocks – Nasdaq offers individual trading of Facebook, Apple, Amazon, Netflix, and Google, creating a FAANG portfolio with expensive shares.
- Tech Funds – It is advisable to look for funds that invest at least 80% of their assets in stocks. Some of the top returning ETFs (Exchange-Traded Funds) include:
- iShares Expanded Tech Sector ETF (IGM)
- NYSE Technology ETF (XNTK)
- Invesco QQQ Trust (QQQ)
FANG+ exchange-traded note (FNGS) by BMO Capital Markets, tracks an index of FAANG, along with five other tech stocks like Alibaba and Twitter.
- Index Funds – FAANG’s financial significance is considered heavily in many broad-based market index funds – including the First Trust Dow Jones Internet Fund (FDN) and the Nasdaq Composite Index (IXIC).
Check out the exclusive quiz to learn more about the market’s most significant FAANG.
Five stocks of FAANG
The acronym FAANG represents five prominent technology companies: Facebook, Amazon, Apple, Netflix, and Google (Alphabet).
- Facebook (FB): Facebook, a global social media platform, connects billions through services like Facebook, Instagram, WhatsApp, and Messenger, generating revenue through advertising.
- Amazon (AMZN): Amazon, an e-commerce giant, initially started as a book marketplace but has expanded into various products and services through Amazon Prime, AWS, and Amazon Studios.
- Apple (AAPL): Apple, global technology giant, known for iPhone, iPad, Mac, and innovative services.
- Netflix (NFLX): Netflix revolutionized the entertainment industry with its vast library of movies, TV shows, documentaries, and original content, positioning it as a leading player.
- Google (Alphabet) (GOOGL): Google, a multinational conglomerate, dominates internet search, online advertising, and offers products like Google Maps, Google Cloud, and Android operating system.
These FAANG stocks have consistently demonstrated growth and innovation, driving their success and making them key players in the technology and digital sectors.