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What are FAANG Stocks And Why Does Everyone Wants Them?



In the world of investment, FAANG means a massive money and you can be the one of the lucky investors who will win big. FAANG representing the first letters of the Facebook, Amazon, Apple, Netflix, Google. The media has developed an acronym for them, so it is so popular for representing five technology stocks on the market. These five shares know how to collect attention all the time. If you follow the finance news, you can see that FAANG shares often attract attention.

Jim Cramer, co-founder of TheStreet.com, became the inventor of the FAANG acronym.

Why are these stocks so important?

The performance of these five companies affects not only the stock market, but also the life of all of us. About five years ago, the price of Amazon stocks was around $ 300; today it is watching at $ 1626. With a value of 795 billion dollars, Amazon is the largest name of the S & P 500 index after Apple and Microsoft. (S & P 500 is composed of 500 companies with the highest value in the USA.)

Even the smallest member of the FAANG, Netflix, is one of the heaviest shares of the general market. The company, which has a value of about $ 150 billion, accounts for 0.55% of the S & P 500 alone. Netflix shares also rise from $ 40 to $ 339 in the last five years.
 
The total value of the five companies accounted for 13% of the index, which included 500 companies.

Is FAANG a Good Investment?

The fact that FAANG stocks succeed in the past years has given confidence to the people. Moreover, when things do not go well, for example when the quarterly rate of increase in the number of users decreases or a number of revenue opportunities have been compromised, the shares of these companies may decline.

But you are lucky that there are easier ways of getting shares from the FAANG stocks and adding these companies into your portfolio. Maybe you are using one of these methods.

Some mutual funds are investing directly in technology companies, including FAANG
stocks. Many foreign equity funds even invest in dozens of different companies, including the FAANG stocks. If you're investing in foreign equity funds, check the portfolio of funds you're investing in, it's quite possible to see the FAANG quintet.

In this way, you have a strengthened portfolio as well as holding the stocks of the most popular companies in the financial world; this is an investment strategy that will have very large returns in the long run.

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