FAANG is an acronym that refers to the shares of the five major US technology companies: Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Google (GOOG).
The term FAANG first appeared in 2013. Besides being known among millions of people worldwide, they are also shares of the world’s most influential technology company, with a combined market value of over $ 5.6 trillion.
Some still see FAANG technology stocks as just a bubble that will eventually emerge. In contrast, others know that it will continue to grow through its excellent financial and operating performance that has lasted for years.
The performance and growth of these companies have improved dramatically due to the significant investments that have been made in them. Such as investments made by Warren Buffett, Soros, and other significant investors worldwide in their shares.
Technology stocks are traded on the Nasdaq and the S&P 500. Together, FAANG technology stocks make up about 15% of the Standard Index.
This significant impact on the index means that fluctuations in the price of FAANG stocks can significantly impact the performance of the S 500 overall. In August 2018, for example, FAANG stocks accounted for nearly 40% of the index’s gains from the lowest recorded in February 2018.
Big Tech Companies – FAANG
According to economists’ estimates, FAANG shares have lost more than $ 1 trillion from their peak value due to the sharp fall in the markets in November 2018. Although their valuations have since recovered, the level of volatility that FAANG shares sometimes exhibit and the impact these stocks can have in The market, in general, is a source of concern for some investors.
On the other hand, optimists see Big Tech stocks as long-term affluence stocks. For example, Facebook is the largest social media network globally with nearly 2.7 billion users, and as of June 2020, it recorded revenues of $ 75 billion and net income of $ 24 billion.
At the same time, Amazon has become an impossible force in the world’s e-commerce. Amazon revenue in light of the global health crisis amounted to about $ 322 billion and net income of $ 13 billion.
FAANG technology stocks are easy to obtain via a broker that offers all of these shares on an easy-to-use trading platform. These are publicly listed companies with sizeable daily trading volumes, and they are routinely included in exchange-traded funds (ETFs).