Facebook, Amazon, Apple, Netflix and Google have been on an incredible run since their IPO’s. These five companies dominate the market and are worth more than $1 trillion combined. FAANG stand FOR In finance, “FAANG” is an acronym that refers to the stocks of five prominent American technology companies. FAANG STOCK refer Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX); and Alphabet (GOOG) formerly known as Google stocks .
Here Are The Top Five Stocks Today
There are some big winners out there right now. And while these companies aren’t necessarily new, they are still growing at a rapid pace. In fact, these five companies have seen their stock prices rise by more than 50% since their IPOs. If you’re looking for a stock to invest in, these are the ones to watch. They’ve been on fire lately, with each company hitting new highs.
There are several reasons why these companies are so successful. First, they have strong brand recognition. Second, they have a large customer base. Third, they have a good product. Fourth, they have a low cost structure. And finally, they have a high return on equity.
FAANG Stock Price Today
Here is a 5 FAANG stock price chart
Let’s take a look at these Five high-performing technology stocks.
Facebook (NASDAQ: FB)
Million of the people at this time use social networks of facebook to stay connected with the latest updates and their family, friends. NASDAQ:FB owns four of the most largest social media apps which keep the people connected. These applications include Instagram, Facebook, WhatsApp and Messenger. In US and Canada, more than 185 million people are using Facebook daily. When the users browse through photos and videos, ads are displayed through which it makes money. It generated most of the company’s revenue in 2018 which was $55.8 billion.
Amazon (NASDAQ: AMZN)
Amazon is the world’s e-commerce largest retailer. It was founded in 1994 as online bookstation. Through it’s Amazon Web services, It’s a leading company in cloud computing solutions.
Before 2017, investors got slow profits from Amazon. As the stock prices tripled, the investors got profitable returns from Amazon.
Apple (NASDAQ: AAPL)
Apple started with computers nearly 1980s. After the progress in the tech market. Apple rise with the smartphones, watches, music, cloud storage and laptops. The half of the Apple prices comes from it’s smartphone sales. After 2016, the share prices of Apple mounted in the stock market.
Netflix (NASDAQ: NFLX)
Netflix stepped into the firm differently. It initiated in 2002 by subscription of renting DVDs through mails. It progressed within years to streaming movies and now it’s creating the original Netflix content. It’s worth paying attention because it’s has smaller market capitalization than other FAANG firms. After 2017, the Netflix shares elevated to the heights.
Now Netflix has millions of the subscriber who are willing to pay every month. It’s rapid increase in television business and subscribers have made netflix one of the most influential companies.
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL)
The world’s most popular search engines is google. It’s the company of Alphabet. The company owns two classes which are (Ticker: GOOGL) providing the owner’s voter rights and (Ticker: GOOG) doesn’t not provide the facility of voting. Google offers wide range of online services including emails, softwares, video streaming services and also produces electronics now. Google has profited everyone in a good manner. The earliest investors of google may have beneficial made out.
How to buy FAANG stock :
Even if you are investing directly into faang stocks, the price movement of the FAANG can have a whole impact on the stock market.
Apple, amazon, Facebook and Google are featured in top 10 in the US S&P 500. Any EFT or mutual fund heavily invest in the FAANG stock, if they Broadly track S&P 500.
The process of purchasing shares of each of these companies is easier because each of these FAANG companies are listed on NYSE or the NASDAQ. You can easily invest in FAANG stocks through online brokerage account with companies such as E-Trade, Fidelity, TD Ameritrade, or Robinhood. The major thing to highlight is that FAANG stocks are highly expensive. If you are not willing to invest in these Five major tech companies stocks directly then you have a choice to get exposure to these companies through mutual funds or EFTs. Basically ETFs give you a way to buy and sell a basket of assets without having to buy all the stock components individually.
Next FAANG stock:
The five FAANG companies have made a large space in our lives. In coming years there is alot more to handle. With incread in this diverse web services, there must be other companies ready to be the next FAANG. The few rising FAANG stock companies are ready to join these Five and making big profits for their investors.
NVIDIA (NVDA) seems to be the future facebook. Nvidia’s demand rised due to cryptocurrency mining hardware which they are trying to use to revolutionize Al.
Everyone wants to enter the chinese market and rise their company easily. Like Amazon, Ali baba started with chinese market. It has become one of the largest e-commerce companies with the rising time. It may seems like, Ali baba will be taking place of the future amazon.
The third company that can be a future FAANG is Square(SQ). Square is working the same as netflix but in payment market. What netflix did it with videos and square is doing it with money.
Which faang stock to buy?
When talkin about the Faang, the question that comes up next is that how and which fang stock to invest in! Making an investment in 2021 won’t be easy. The sudden fall due to corona virus disease (Covid-19) made most of the investors suffer but Faang stocks were busy making money through enhancing their services and increased investors online.
Within the previous year, benchmark S&P 500 went up to 6%. The five Faangs Facebook, Amazon, Apple, Netflix, and Alphabet reached in between 19%-72%. These leaders of the industry propelled higher within the year.
But not all five of the FAANG stocks gave remarkable results. Looking at the outperformance of these FAANG s in 2020, three out of five were with amazing outcomes. Among these three you can choose your best FANNG stock to invest in.
In 2020, facebook gained billions of users. So that the advertisers caught more than expected attention. Recently, the sales of the companies expanded through Facebook, Whatsapp and Instagram. The widespread social platform of facebook is still in the growing phase. This is definitely worth buying.
Google is the most dominant search engine platform for the community. As advertisers are trying to display their message Infront of facebook audience, they are catching the attention of relevant Google search space. Alphabet is also home for youtube and Google cloud. You must be fimilar of youtube. Youtube is one of the most visited social platform. But it’s google cloud just scored 45% growth in the prior year.
The third FAANG stock to pick is the e-commerce Amazon. Since the layers of pandemic covered the whole world and the system disturbed, amazon was the target point to be focused on. “Stay home, Stay safe” worked perfectly well for the online retailer. Amazon became the stopping point for the consumers online. Amazon web services generated more than $10 billion in sales during 2020. The cash flow of Amazon multiples over the past decades which showed that the within next three to four year it should be the $3 trillion company.
Frequently Asked Questions
What Does FANG Stand For In Stocks?
Take the first letter of each stock and you get FANG.
Who Are The FAANG Stocks?
FAANG is an acronym for the five companies that make up this select group of technology stock. The FAANG stock are considered momentum and growth stocks.
Should i Invest In FANG Stocks?
This is the question that seems to get asked every year. So answer is Look for stocks with strong sales and earnings growth and with charts under the right market condition so you can take decision you should invest in stock or not.
The FANG stocks have been outperforming the broader stock market this year.
Facebook stock notched an all-time highof 304.67 on Aug. 26.
Amazon stock has been consolidating for the past 12 weeks with a buy point of 3,552.35.
Netflix stock has been consolidating for the past 19 weeks with a buy point of 575.47.
Google stock broke out of a cup base at a buy point of 1,726.20.
what is the best FAANG Stock?
FAANG stocks have been unstoppable this year
- Facebook (NASDAQ:FB)
- Amazon (NASDAQ:AMZN)
- Apple (NASDAQ:AAPL)
- Netflix (NASDAQ:NFLX)
- Google, a subsidiary of Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL)
To find the best stocks to buy Look for stocks with strong sales and earnings growth and with charts proper bases under the right market conditions. The one FAANG stock that stands out as historically cheap is Amazon. Amazon is valued at 75 times next year’s forecasted earnings per share, this figure is practically meaningless given how much of the company’s cash flow is reinvested back into growth and customer engagement opportunities.