What are FAANG stocks?

Summary

  • FAANG refers to the stocks of Facebook, Amazon, Apple, Netflix, and Alphabet.
  • FAANG stocks’ market capitalization ranges from US$237 billion to over US$2 trillion.
  • All five companies are included in the S&P 500 Index.

FAANG is an acronym used to refer to the stocks of some of the most popular and largest US-based technology companies. Facebook (NASDAQ: FB), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Netflix (NASDAQ: NFLX), and Alphabet (NASDAQ: GOOG) are five companies referred to as FAANG stocks.

These prominent companies maintain a dominant position in their market and have seen their business and stock grow significantly in the past few years.

FAANG stocks trade on NASDAQ and their market capitalization range from US$237 billion to more than US$2 trillion. All five companies are included in the S&P 500 Index and make around 15 percent of the index.

Here, we explore the stocks of these five companies and their latest financials.

Facebook Inc. (NASDAQ:FB)

Facebook is a popular social networking platform globally. It also owns Instagram, WhatsApp and GIPHY. Facebook had 2.85 billion monthly active users and 1.88 billion daily users, while around 3.4 billion people were active on at least one of Facebook’s platforms, a monthly basis, as of the end of March.

Advertisements are the main source of revenue for the company. In 2020, Facebook reported revenue of US$85.96 billion, of which over US$84 billion came from advertisements.

The social media behemoth has a market capitalization of around US$1 trillion. The stock returned 29.29 percent year to date and a P/E ratio of 30.02. Its stock price was in the range of US$226.90 to US$358.79 in the last 52 weeks.

Facebook saw its net income jump 94 percent year over year to US$9.50 billion in the first quarter of 2021. Revenue grew 48 percent to US$26.17 billion.

The company will publish its second-quarter update on July 28.

READ MORE: Facebook joins the trillion-dollar club for the first time

Amazon.com Inc. (NASDAQ: AMZN)

Amazon is a heavyweight in the e-commerce space. Besides online retail, Amazon also operates in cloud and video streaming services. In 2020, the company generated total net sales of US$386.04 billion and earned US$21.3 billion.

The Seattle-based technology company has a market capitalization of US$1.88 trillion. Amazon’s stock returned 14.17 percent. It has a P/E ratio of 70.78. The shares traded as high as US$3,759.99 and as low as US$2,871.00 in the last 52 weeks.

Amazon had reported a net sales growth of 44 percent year over year in its first quarter to US$108.52 billion. Net income during the three months more than tripled.

For the April – June quarter, Amazon expects its net sales to grow as much as 30 percent year over year to up to US$116 billion. Amazon is set to post its second-quarter earnings on July 29.

Meanwhile, Amazon announced a US$8.45 billion acquisition of entertainment company MGM to enhance its content offering on Prime Video.

Recently, Amazon founder Jeff Bezos stepped down as the company’s CEO and become its executive chair. Andy Jassy is the new chief executive of Amazon.

READ MORE: Amazon Announces US$8.45B Deal To Buy MGM

Apple Inc. (NASDAQ: AAPL)

Apple is popular for its smartphone, personal computers, and tablet. The company generated US$274.52 billion in total net sales during the fiscal year ended Sept. 26, 2020, of which iPhone sales accounted for US$137.78 billion. Sales from Mac and iPad came in at US$28.62 billion and US$23.73 billion, respectively.

Source: Pixabay

The California-based tech giant has a market cap of US$2.42 trillion. The stock returned 8.90 percent this year. It has a P/E ratio of 32.56. Its shares traded in the range of US$ 89.14 to US$146.32 in the last 52 weeks.

In its second quarter of fiscal 2021, Apple’s net income doubled to US$23.63 billion on a 54 percent year over year revenue growth to US$89.58 billion.

The company, which has projected its revenue to grow in strong double digits in its June quarter, is scheduled to report its fiscal third-quarter results on July 27.

READ MORE: Is Apple listed on NYSE or NASDAQ?

Netflix Inc. (NASDAQ: NFLX)

The California-based entertainment company offers one of the top streaming platforms for TV series, documentaries, and feature films. Netflix makes money primarily from monthly membership fees for its streaming services. In 2020, the company’s total revenue totaled US$24.99 billion.

Netflix has a market capitalization of US$237.65 billion. Its share price declined 0.63 percent year to date. It has a P/E ratio of 66.44. The stock traded between US$458.60 and US$593.29 in the last 52 weeks.

At the end of its March quarter, Netflix had 207.64 million subscribers. However, the subscriber numbers fell short of the company’s target of 210 million subscribers.

Netflix’s revenue in the first quarter rose 24 percent to US$7.16 billion from the year-ago quarter. Net income soared 141 percent year over year to US$1.71 billion. The company will disclose its second-quarter results on July 20.

READ MORE: What Are The Top 10 NASDAQ Stocks?

Alphabet Inc. (NASDAQ: GOOGL, GOOG)

Alphabet owns search engine giant Google and the online video-sharing platform YouTube. Alphabet generated US$182.53 billion in revenue and US$40.27 billion in net income. Advertising revenue from Google totaled US$146.92 billion while revenue from cloud business US$13.06 billion.

Source: Pixabay

The company’s market cap totals US$1.71 trillion. The stock is up 44.90 percent year to date. It has a P/E ratio of 31.75. The share price fluctuated between US$ 1,406.55 and US$2,615.40 in the 52-week period.

In its first quarter this year, Alphabet had reported a 34 percent year-over-year growth in its revenue. Net income more than doubled to US$17.93 billion during the three months.

READ MORE: Alphabet Shares Up 4.5% In Extended Trading On Strong Q1 Revenue Growth

Meanwhile, Alphabet raised its share buyback program by US$50 billion. The company will publish its Q2 results on July 27.

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

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