FAANG Stocks 2024: Investing in the Future of Tech

For example, Facebook is the world’s largest social network with approximately 2.9 billion monthly active users as of April 2024. This large influence over the index means that volatility in the stock price of the FAANG stocks can have a substantial effect on the performance of the S&P 500 in general. Each of the FAANG stocks trades on the Nasdaq exchange and is included in the S&P 500 Index. Since the S&P 500 is a broad representation of the market, the movement of the market mirrors the index’s movement. Learn how you can make money from the wave of seasoned companies innovating in AI and new AI tech companies. Driven by its relationship with OpenAI, the company sees AI as the next major frontier and has invested significantly in new products like the Azure OpenAI and its Copilot AI assistant.

Growth and innovation

Their colossal market capitalization, totaling 8.4 trillion dollars showcases their dominance and influence. Representing approximately 15% of the S&P 500, these tech giants have become key indicators of the US economy’s status. FAANG stocks, given their visibility and impact, are highly susceptible to market sentiment.

The FAANG stocks grew rapidly during the mid- to late 2010s, becoming increasingly influential over the stock market. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. All combined, the FAANGs have accumulated 8.4 trillion dollars worth of market value as of August 2023, making FAANG members one of the most popular stocks on the market. As FAANG stock prices will likely never be lower, and almost assured to rebound once the pandemic ends. Which might just mean, for the crafty investor that this is the perfect time to invest.

However, the group has run into turbulence as rising inflation and rising interest rates have hit tech stocks especially hard. If you’ve been investing for a few years, you may have heard of FANG or FAANG stocks — and you may be wondering if those terms are still used. We believe everyone should be able to make financial decisions with confidence. Our writing and editorial staff are a team of experts holding advanced financial designations and have written for most major financial media publications. Our work has been directly cited by organizations including Entrepreneur, Business Insider, Investopedia, Forbes, CNBC, and many others. The articles and research support materials available on this site are educational and are not intended to euro to mexican peso exchange rate convert eur be investment or tax advice.

We do not include the universe of companies or financial offers that may be available to you. Any daily watch list of penny stocks and top breakout companies estimates based on past performance do not a guarantee future performance, and prior to making any investment you should discuss your specific investment needs or seek advice from a qualified professional. What started as a software project in a Harvard dorm turned into a social media empire.

What Does the Acronym FANG Stand for?

Its vision of a ‘metaverse’ – a collective virtual shared space, takes digitization an overview of foreign exchange derivatives a leap further, aiming to revolutionize how humans interact in the virtual realm. Meanwhile, Netflix has expanded from a distributor of other people’s content to a producer and distributor of its own content. In total, the five core FAANG stocks make up about 32 percent of the index’s value.

1. Given Apple’s massive revenue base, it is difficult to find ways to boost growth.
2. However, despite exhibiting growth stock behavior, FANG stocks are not too volatile.
3. However, their prominence also exposes them to potential risks, such as market sentiment-driven volatility, regulatory scrutiny, and challenges from the competitive landscape.
4. Which might just mean, for the crafty investor, that this is the perfect time to buy.
5. The average price target among the 44 analysts covering GOOGL stock is $129, suggesting 36.3% upside.
6. These are considered to be some of the best tech companies to invest in globally, so if you’re looking into purchasing technology stocks, this is for you.

Investing in FAANG or MAMAA Stocks

Facebook benefited immensely during the COVID-19 pandemic as the number of businesses that use social media to reach their customers increased exponentially. To help sustain that momentum, Facebook has been investing in new technologies, such as the metaverse, to fuel future growth. “With Facebook now Meta and Google now Alphabet, that means our new acronym is MAANAM. Yet, not quite as sexy, but the returns sure could be.” Their proponents will argue that their valuations are justified based on their fundamental strength as businesses.

Their substantial growth has been buoyed by high-profile purchases made by large and influential investors such as Berkshire Hathaway (BRK), Soros Fund Management, and Renaissance Technologies. These are just a few of the many large investors who have added FAANG stocks to their portfolios because of their perceived strength, growth, or momentum. With such a small index, investors may be better off building their own portfolio of FAANG stocks and avoiding the ETN expenses. That’s especially true now that most discount brokers charge no commissions and allow fractional share purchases. Microsoft started out by licensing its Windows operating system to PC manufacturers, but it’s a much broader company 40 years later.