Tech-focused ETFs are also likely to include some if not all of FAANG stocks and offer similar exposure. This allows you to invest in a group of stocks, especially tech companies. You should look at ETFs like the NYSE Technology ETF or the iShares Expanded Tech Sector ETF.

How to invest in FAANG stocks?

Apple made about $366 billion in total revenue in the financial year that ended on Sept. 30, 2021, with iPhones making up about 33% of the total sales. That revenue mix, however, is changing fast as the biggest FAANG stock by market cap tries to sell more of its services which offer higher margins. When Cramer first coined the term FANG back in 2013, Facebook’s market cap was just $65 billion and the company was less than a year removed from its initial public offering (IPO) in May 2012.

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Our estimates are based on past market performance, and past performance is not a guarantee of future performance. A positive earnings report can bolster stock prices, while any sign of financial distress can lead to dips. Given the immense market capitalization of FAANG stocks, even slight financial perturbations can have significant ramifications on broader market indices. Obviously, past performance is no guarantee of future results, but these stocks have continuously proven themselves over the past ten years.

Leveraging FAANG Stocks: Insights for Indian Investors in 2025

In the years that followed, Facebook grew from an unprofitable social media platform to a multi-platform online advertising behemoth. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site.

Step 3: Following FAANG News and Updates

But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. Any 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.

These reports provide a glimpse into a company’s health, indicating its profitability, revenue streams, and future guidance. “Google it!” – a phrase that testifies to the behemoth’s influence. Alphabet, Google’s parent company, spans multiple ventures, but its core, the search engine, remains its most iconic. Rooted in a culture of innovation and a penchant for design, Apple doesn’t just sell products.

  • A positive earnings report can bolster stock prices, while any sign of financial distress can lead to dips.
  • It also has its arms in areas ranging from cloud services to AI to self-driving cars (through the Alphabet subsidiary Waymo).
  • For investors and tech enthusiasts, knowing what FAANG means is key.
  • Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site.
  • Buoyed by these earnings, Netflix’s stock rose by 100.1% over the preceding five years, while Alphabet’s rose by 174.6% over the same time frame.
  • Meanwhile, Netflix has expanded from a distributor of other people’s content to a producer and distributor of its own content.
  • Overall, FAANG stocks are considered relatively stable, safe investments, but there are risks such as around volatility, regulatory changes.

To monetize this extraordinary user base, Facebook sells ads targeted based on users’ personal preferences and usage patterns. David is comprehensively experienced in many facets of financial and legal research and publishing. As an Investopedia fact checker since 2020, he has validated over 1,100 articles on a wide range of financial and investment topics. Some analysts consider FAANG stocks to be overvalued given their significant gains in recent years, with some thinking that the pace of growth is unsustainable.

The level of volatility sometimes shown by FAANG stocks—and the oversized influence these stocks can have on the market overall—is a source of concern for some investors. 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. You will have no right to complain to the Financial Ombudsman Services or to seek compensation from the Financial Services Compensation Scheme. All investments can fall as well as rise in value so you could lose some or all of your investment.

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Netflix will also reportedly be aggressively cracking down on password sharing in 2023. In 2015, https://www.forex-reviews.org/ the company announced it would be rebranding as Alphabet. Part of the decision for the name change was to highlight all of the company’s other businesses outside of Google Search, such as Gmail, YouTube, Google Nest and Google Cloud.

  • Many other companies traded on the Nasdaq exchange are also considered growth investments, although very few have matched the impressive growth of the FANG stocks.
  • You might see these risks as being less likely, or you might simply find the potential rewards to be well worth the risks.
  • To speed up your search process, check out our lists of the best trading platforms and best stock brokers.
  • At the end of 2014, the FAANG stocks accounted for about 7.4% of the market capitalization of the S&P 500.
  • These reports provide a glimpse into a company’s health, indicating its profitability, revenue streams, and future guidance.
  • To help sustain that momentum, Facebook has been investing in new technologies, such as the metaverse, to fuel future growth.

What started as a software project in a Harvard dorm turned into a social media empire. Today Mark Zuckerberg’s Meta counts over 3 billion daily active users across its properties that include Facebook, Messenger, Instagram and WhatsApp. In the latest quarter, the company reported nearly $32 billion in revenue, up 11% on a year-over-year basis, while net income rose 16% to $7.8 billion. Alternatively, you can trade individual shares of FAANG companies with contracts for difference (CFDs). CFDs are trading instruments that allow you to speculate on a stock price without having to own the underlying shares. If you expect the company’s coinmama exchange review share price to rise you can take a long position, and if you think it will move lower you can go short and still make a profit on the trade if the price falls.

However, you should be aware of the high risks involved, as CFD trading also magnifies losses if the share price moves against your position. An alternatives to FAANG stocks is the Magnificent 7, a group of tech stocks that includes FAANG stocks except Netflix, while adding Microsoft, Nvidia, and Tesla. Some investors might prefer that grouping, while others might go broader, such as with an ETF that tracks many tech companies in addition to FAANG. Other stocks and funds in different sectors could also be worth considering. These corporations — all American-based, but with a global presence — are not only household names, they’re financial behemoths. Their combined market capitalization is nearly $10 trillion, and they Best forex trading platform account for roughly 20% of the market cap of the S&P 500 (an index of 500 of the largest public companies in the U.S.).