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FAANG Stocks - Everything You Need to Know Before Investing

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FAANG refers to the 5 biggest and most promising American technology companies: 

Facebook, Apple, Amazon, Netflix, and Google. 

If you are wondering why FAANG, Jim Cramer - the host of CNBC’s Mad Money - coined the term in 2013. They originally gave the name FANG (A stands for Apple). The second A for Amazon was added in 2017. 

In this post, Vic Wadhwa will introduce to the 5 most popular and time tested American technology companies.

Let’s start with the good old Facebook!

Facebook

Facebook was launched by Mark Zuckerberg on February 4, 2004. It is one of the fastest-growing social media brands in the world. Facebook has approximately 2.70 billion monthly active users. Below are the top applications owned by Facebook:

  • Instagram
  • WhatsApp
  • Oculus VR

The per stock value of Facebook was $267.97 on September 15, 2020. Here’s how the stock value of Facebook has gone up and down in last year:

Vic Wadhwa totally recommends investing in this stock if you have the money! 

Apple

Apple was founded on April 1, 1976, by Steve Jobs, Steve Wozniak, and Ronald Wayne. The headquarters of Apple is in California, United States. Unlike Facebook which is mostly dependent on ad revenue, Apple has some solid products in its kitty. Below are the most popular ones:

  • App Store
  • Apple Music
  • Apple News
  • Apple Pay
  • Apple TV

The per stock value for Apple was $113.49 on  September 15, 2020. Here’s how the stock value of Apple has fluctuated in the last year:

According to Vic Wadhwa and investment experts, Apple has a strong customer loyalty and its stock value gives handsome returns in the long run.

Amazon 

Amazon was founded by Jeff Bezos on July 5, 1994. In its early years, it was an online bookseller but now, it has grown to become probably bigger than even Mr. Jeff’s imagination. Below are the popular products and services from Amazon:

  • Amazon Prime 
  • Amazon Kindle 
  • Amazon Alexa
  • Amazon Music
  • Amazon Web Services

The per stock value of Amazon was 3,102.97 on September 15, 2020. Here’s how the stock value of Amazon has gone down and up in the last year:

Amazon stock is really expensive and small fluctuations can leave the newbies in jitters. So, Vic Wadhwa recommends picking this up only if you have patience and deep pockets. 

Netflix

Netflix was founded by Reed Hastings and Marc Randolph on August 29, 1997. The headquarters of Netflix is in Los Gatos, California, U.S. It is currently one of the biggest players in:

  • Digital content production
  • Content distribution
  • Television production

The per stock value of Netflix was $480.67 on September 15, 2020. Here is how the stock value of Netflix has fluctuated in the last year:

Netflix has some major competitors in Hulu, Amazon Prime, and Disney. So, Vic Wadhwa is not very optimistic about investing in Netflix right now. 

Google

Google was founded on September 4, 1998, by Larry Page and Sergey Brin. It has 114,096 employees in the third quarter of 2019. Headquartered in Mountain View, California, U.S, the search giant pumps a lot of money from:

  • Google 
  • Google Cloud 
  • Google Fiber

The per stock value of Google was $1526.05 on September 15, 2020. Here is how the stock value of Google has gone up and down in the last year:

According to Vic Wadhwa, buying Google stocks is always a good bet.

As you must have noticed, FAANG stocks are pretty expensive and not everyone has the stomach to invest in them. But these 5 are not the only tech companies worth investing in.

Other tech companies worth investing

If you ask Vic Wadhwa (or any other investor as well), there is no dearth of technology companies in which you can invest to make a profit. Below are some technology brands which I am closely watching:

  • Magnite
  • Baozun
  • Limelight Networks
  • Baidu
  • Alibaba
  • Tencent 
  • Media Tek

Vic Wadhwa on Tech Investing 

Investing in tech companies is hot right now but I would recommend you stay away from technology stock if you don't know the current market dynamics of the companies you are planning to invest in. I will be back soon with more content on stock investing. So, I highly recommend staying connect with Vic Wadhwa

Stay safe!