FAANG is an acronym that stands for five major, highly successful U.S. tech companies: Meta (formerly Facebook), Amazon, Apple, Netflix, and Google.
FAANG stocks' performance has a substantial effect on the overall market and comprises 15% of the S&P500 Index
SPX
.
If you follow the financial or business news, you may have seen or heard the term FAANG thrown around. No, it's not a misspelling or an animal's roar. It's an acronym that stands for five big companies — some might say the big companies — in the high-tech industry.
The FAANG quintet consists of Meta (formerly Facebook), Amazon , Apple, Netflix and Google (Alphabet as an official corporate name).
These corporations — all American, but with a global presence — are not only household names, they're financial behemoths. Their combined market capitalization is over $4 trillion. The blue-chip stocks of the tech sector, they collectively make up 15% of the Standard & Poor's 500
SPX
(an index of the largest public companies in the US). So they represent not only one of the US' most significant industries, but a sizable chunk of the US stock market itself.
The origins of FAANG
FAANG actually began as FANG. The origin of the acronym has been attributed to Jim Cramer, the financial TV host and co-founder of TheStreet.com. Known for his slangy abbreviations and catchy phrases, Cramer coined the term in 2013 to represent four tech stocks with outsized market appreciation. Cramer believed that these companies belonged together because they are all high-growth stocks that share the common threads of digitization and the web.
Cramer's original term was just FANG — it didn't initially include Apple. The company joined the ranks in 2017, reflecting the growth of internet services (iCloud, Apple Music, Apple Pay) to its revenues.
So the acronym became FAANG, and it's remained so.
The five stocks of FAANG
They need no introduction: The five stocks of FAANG are all familiar brands, whose products and services permeate our lives daily. They are also American corporate success stories — each has seen its stock shares experience triple-digit growth since 2015, and year-to-year as well.
👉 Meta (
META
) is the social media maestro, owner of Instagram, WhatsApp, and its Facebook website. It has returned more than 190% over the past 12 months, and it is a # 1 over all S&P500 Index components with that amazing result.
👉 Apple (
AAPL
), the sole product manufacturer of the group, with more than 36% yearly performance.
👉 Amazon (
AMZN
), the world's largest e-store, has returned more than 65% over the past 12 months.
👉 Netflix (
NFLX
), the superpower of streaming, has returned 44% TTM.
👉 Google — parent company Alphabet (
GOOG
,
GOOGL
) — has a name synonymous with internet searches and services. Its GOOG shares have increased by more than 43% in 12 months.
Just to put these numbers in context: the S&P 500 has grown 17% over the past 12 months. So FAANG stocks have been at the forefront , significantly outperforming the broad market.
Twelve months performance of
FAANG
components vs S&P500 Index
The bottom line
The main technical graph (3-day chart for
FAANG
stock basket, introduced by @FXCM provider, with 20% inception weight for every single component) illustrates perhaps right there happens the major breakout of 52-week highs, with further projected/ targeted upside price action.
FAANG stocks' performance has a substantial effect on the overall market and comprises 15% of the S&P500 Index
SPX
. If you follow the financial or business news, you may have seen or heard the term FAANG thrown around. No, it's not a misspelling or an animal's roar. It's an acronym that stands for five big companies — some might say the big companies — in the high-tech industry.
The FAANG quintet consists of Meta (formerly Facebook), Amazon , Apple, Netflix and Google (Alphabet as an official corporate name).
These corporations — all American, but with a global presence — are not only household names, they're financial behemoths. Their combined market capitalization is over $4 trillion. The blue-chip stocks of the tech sector, they collectively make up 15% of the Standard & Poor's 500
SPX
(an index of the largest public companies in the US). So they represent not only one of the US' most significant industries, but a sizable chunk of the US stock market itself. The origins of FAANG
FAANG actually began as FANG. The origin of the acronym has been attributed to Jim Cramer, the financial TV host and co-founder of TheStreet.com. Known for his slangy abbreviations and catchy phrases, Cramer coined the term in 2013 to represent four tech stocks with outsized market appreciation. Cramer believed that these companies belonged together because they are all high-growth stocks that share the common threads of digitization and the web.
Cramer's original term was just FANG — it didn't initially include Apple. The company joined the ranks in 2017, reflecting the growth of internet services (iCloud, Apple Music, Apple Pay) to its revenues.
So the acronym became FAANG, and it's remained so.
The five stocks of FAANG
They need no introduction: The five stocks of FAANG are all familiar brands, whose products and services permeate our lives daily. They are also American corporate success stories — each has seen its stock shares experience triple-digit growth since 2015, and year-to-year as well.
👉 Meta (
META
) is the social media maestro, owner of Instagram, WhatsApp, and its Facebook website. It has returned more than 190% over the past 12 months, and it is a # 1 over all S&P500 Index components with that amazing result. 👉 Apple (
AAPL
), the sole product manufacturer of the group, with more than 36% yearly performance. 👉 Amazon (
AMZN
), the world's largest e-store, has returned more than 65% over the past 12 months. 👉 Netflix (
NFLX
), the superpower of streaming, has returned 44% TTM. 👉 Google — parent company Alphabet (
GOOG
,
GOOGL
) — has a name synonymous with internet searches and services. Its GOOG shares have increased by more than 43% in 12 months. Just to put these numbers in context: the S&P 500 has grown 17% over the past 12 months. So FAANG stocks have been at the forefront , significantly outperforming the broad market.
Twelve months performance of
FAANG
components vs S&P500 Index
The bottom line
The main technical graph (3-day chart for
FAANG
stock basket, introduced by @FXCM provider, with 20% inception weight for every single component) illustrates perhaps right there happens the major breakout of 52-week highs, with further projected/ targeted upside price action.
Trade active:
Jan 24, 2024
👉 As earlier expected, FAANG just hit new ATH and surges higher, following upbeat Netflix
NFLX
Q4'23 Earnings report.
👉 As earlier expected, FAANG just hit new ATH and surges higher, following upbeat Netflix
NFLX
Q4'23 Earnings report.
Trade active:
Feb 2, 2024
👉 Despite of some troubles with Apple and Alphabet, FAANG leads in 2024, against Top 4 U.S. Indices.
👉 This is all because of Zuck... Zuck-Zuck-Zuck...
👉 Despite of some troubles with Apple and Alphabet, FAANG leads in 2024, against Top 4 U.S. Indices.
👉 This is all because of Zuck... Zuck-Zuck-Zuck...
