FANG Stocks: Definition, Companies, Performance

Published

Mon, 2023-Nov-06 09:59:24

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What do FANG stocks mean?

Finance uses “FANG” to refer to the stocks of four major American technology companies: Meta (formerly Facebook), Amazon (AMZN), Netflix (NFLX), and Alphabet/Google. FANG stocks are known for their rapid growth, with some members’ stock prices tripling since 2018.

Several experts also included Apple (AAPL) in 2017, which led to the new moniker “FAANG.” August 2018 and August 2023 saw a more than 113% rise in Apple’s stock price.

Knowing FANG Stocks

Bob Lang of The Street created “FANG stocks,” and Jim Cramer of Mad Money popularized it on CNBC. Market experts and pundits use it extensively. The abbreviation refers to well-known and precious technological businesses that trade on the Nasdaq exchange with 5,000 American companies. Many other Nasdaq-listed businesses are growth bets, but few have equaled FANG’s rise.
FANG stocks have different business strategies despite their success as growth firms.

Facebook Meta

The world’s largest social network is Facebook. Meta serves nearly 50% of the world’s population, with 3.88 billion monthly active users as of June 30, 2023. Facebook offers advertising based on users’ interests and uses habits to monetize its massive user base.

Amazon

Amazon, a prominent B2C e-commerce platform, sells a retail catalog using cutting-edge cloud computing and data analytics. Amazon pioneered online book sales, but books comprise a small portion of their product range.

Netflix

Netflix also boasts rapid client growth. Netflix’s membership base has expanded dramatically from 22 million in 2011 to over 238 million in 2022. Netflix has also started generating exclusive content to compete with new streaming services.

Alphabet google

Alphabet has built a thriving online advertising company using its search engine skills and popular web apps like YouTube, Google Docs, and Google Maps to retain users.

FANG stock performance

Given these fantastic statistics, investors are optimistic about FANG companies’ commercial potential. The firm’s financial performance has driven stock price gains in recent years, supporting this excitement.

In August 2023, Meta announced TTM revenues of over $116.6 billion and net profits of over $23 billion. Amazon earned -$2.7 billion despite $544 billion in revenue. Over the previous five years, these two companies’ stock prices rose 62.3% and 41.3%.

Netflix had nearly $31.6 billion in sales and $4.5 billion in net profits TTM, as did Google. Google earned $280 billion and roughly $60 billion. Netflix’s stock gained 26.8% in five years on these earnings, whereas Google’s rose 113.2%.

How to Buy FANG Stocks

Since FANG stocks are few, investors may trade them directly with their broker, especially since many brokers provide zero-commission trading.

No funds strictly hold FANG or FAANG stocks. Instead, investors might seek tech-rich ETFs like the Nasdaq 100 for substantial weightings.

What is the meaning of the FANG acronym?

Bob Lang of The Street invented FANG, which Jim Cramer of Mad Money popularized on CNBC. This abbreviation refers to the stocks of four major American technological companies: Meta (META) (previously Facebook), Amazon (AMZN), Netflix (NFLX), and Alphabet. Adding Apple (AAPL) in 2017 made “FANG” “FAANG.”

Why FANG Stocks Surge?

Over the previous five years, FANG stocks have grown and become famous, with some tripling their stock prices. Despite growing stock behavior, FANG stocks remain stable. Investors like them because of their consistency and high returns.

What Companies Are FANGs?

FANGs have different business strategies but leverage modern technology to gain and keep consumers. The most popular social network is Facebook. Amazon dominates B2C e-commerce. Netflix has aggressively produced its original programming. Alphabet (Google) has built a thriving online advertising company around its search engine capabilities.

The Verdict

Meta (Facebook), Amazon, Netflix, and Alphabet (Google) are FANG, a group of firms popular with investors owing to their rapid development.

Conclusion

“FANG” alludes to the stocks of four major American tech companies: Facebook (Meta), Amazon, Netflix, and Google.
FAANG now includes Apple since 2017.
Revenues and net profits have increased for each FANG firm.
When tech stocks fall, these equities may be volatile.
Their business strategies differ, but they all leverage innovative technology to gain and keep consumers.

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