What Are FAANG Stocks? Here’s What You Need to Know About These Top Tech Stocks
[ad_1] The post What Are FAANG Stocks? Here’s What You Need to Know About These Top Tech Stocks appeared first on Millennial Money. These technology stocks are leaders in their respective markets and consistently put up market-bearing returns. Here’s why you need FAANG stocks in your portfolio ASAP! Back in 2013, television host Jim Cramer dubbed Facebook, Amazon, Netflix, and Google the “FANG stocks” on his CNBC show Mad Money. The name stuck with investors and eventually, Apple was added to the list of technology growth stocks. Fast-forward to today and these tech stocks continue to dominate in their respective industries and deliver outsized gains for their investors. If you’ve ever wondered why these companies are referred to so often by Wall Street as some of the best stocks and why investors sometimes use these companies to measure the broader tech industry’s growth, read on! The 5 FAANG Stocks Facebook Amazon.com Apple Netflix Google (Alphabet) Facebook (Nasdaq: FB) Facebook (NASDAQ:FB)Price: $341.37 (as of close Jun 25, 2021) While it’s the youngest company on this list, Facebook is still considered a tech stalwart (tech company ages are basically measured in dog years). The company hardly needs an introduction considering the amount of monthly active users its namesake social media app has totals one-third of the world’s population. Despite losing some of its goodwill over the past few years—and receiving some heat from politicians on both sides of the aisle—Facebook is a tech behemoth that simply cannot be ignored. Between its Facebook app, Instagram, and WhatsApp, there’s simply no getting away from the social media giant. Anyone who’s ever tried to “quit Facebook” knows just how hard it is to escape the company’s grasp. Facebook has intertwined so many methods of connecting people to others that the company can easily be used as the definition of a network effect itself. So we all know Facebook is big, but how’s it doing financially and as an investment? Gangbusters is the answer. In 2020, the company’s revenue grew by 22% and net income skyrocketed 58%. The company also has nearly $18 billion in cash, which makes it insanely easy for it to snatch up smaller companies so that it can enter new markets. And as an investment, consider that the company’s share price has nearly doubled the S&P 500’s gains over the past five years—spiking 192%. Like other technology companies, there are always going to be skeptics claiming the demise of a company. The next time you hear that Facebook is finished, kindly slide the company’s quarterly earnings report across the table to your friend—or open your favorite investing app and just show them the company’s long-term gains. Either way, they’ll get the point. Amazon.com (Nasdaq: AMZN) Amazon (NASDAQ:AMZN)Price: $3401.46 (as of close Jun 25, 2021) The e-commerce giant got its start during the early days of the internet by selling books online, but it has since transformed itself into an e-commerce giant that delivers nearly anything we need right to our front doors. It’s literally the “Everything Store.” Under the leadership of founder and former CEO Jeff Bezos, Amazon has evolved into a $1.75 trillion dollar technology company with its hands in everything from cloud computing services to grocery stores. I could spend an entire article writing about all of Amazon’s businesses, but lucky for you, we don’t have time! That said, it’s worth taking a look at some of the company’s largest businesses, including Amazon Web Services (AWS) and its e-commerce platform to understand just how important this company is to the broader market. First up is the company’s massive e-commerce platform and its more than 200 million Prime members worldwide. The company generated $236 billion in sales from its North American e-commerce business in 2020—an increase of 38% from the previous year—and operating income jumped by 23%. Amazon is also seeing explosive growth from its international e-commerce business as well, with sales spiking 39% in 2020. It ain’t easy for any company to put up that kind of growth, but it’s especially impressive when the company is worth an unfathomable amount of money. To really understand Amazon, investors need to look at the company’s AWS business. While AWS doesn’t generate as much revenue as e-commerce—its sales were $45 billion in 2020—it brings in far more profit than e-commerce. Consider that AWS’s operating income in 2020 was $13.5 billion, while e-commerce operating income was just $8.6 billion. That means the company made more money from AWS even though e-commerce revenue was more than five times Amazon’s cloud computing sales. And yes, Amazon’s stock is putting up astronomical gains as well. The company’s stock outpaced the S&P 500 by more than 3.5X over the past five years, gaining an enviable 385%. Pick Like A Pro Where to invest $500 right now Lots of new investors take chances on long shots instead of buying shares of great companies. I prefer businesses like Amazon, Netflix, and Apple — they’re all on my best stocks for beginners list. There’s a company that “called” these businesses long before they hit it big. They first recommended Netflix in 2004 at $1.85 per share, Amazon in 2002 at $15.31 per share, and Apple back in the iPod Shuffle era at $4.97 per share. Take a look where they are now. That company: The Motley Fool. For people ready to make investing part of their strategy for financial freedom, take a look at The Motley Fool’s flagship investing service, Stock Advisor. They just announced their top 10 “best buys now” across the entire stock market. Whether you’re starting with $100, $500, or more, you should check out the full details. Email Address Continue Also opt-in to receive Millennial Money! It’s our newsletter devoted to helping you achieve financial freedom. That means you’ll receive new stock ideas, our favorite side hustles, and much more every single week! By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services
What Are FAANG Stocks? Here’s What You Need to Know About These Top Tech Stocks Read More »









