What Are FAANG Stocks? Top Stocks To Invest In

FAANG Companies Details and Descriptions

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There is no guarantee that FAANG companies will repeat the marvelous performance of the past decade in the next 10 years as well, but their market leadership and growth potential suggest that FAANG stocks will continue to be the main driver of capital appreciation for both small and large investors. Here is a brief introduction to FAANG businesses and what makes them the best stocks to invest in:

Meta is the largest social media company in the world, operating four of the five most widely used social media platforms, including Facebook, Instagram, WhatsApp and Messenger.

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.

Amazon runs the world’s largest e-commerce platform, hitting about $1 billion-a-day revenue mark in 2020, reflecting its massive growth since its birth in 1994. Its market dominance, combined with explosive revenue growth, has made it the best FAANG stock when it comes to returns for investors.

Apple’s main strength is its ubiquitous iPhone which makes up the major portion of its sales. 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.

Netflix is the smallest FAANG stock by the market capitalization in the group, but the company is the biggest streaming player, providing ad-free movies and shows to over 209 million global subscribers. Its shares surged to a record high in the fall of 2021, powered by massive growth in subscribers during the pandemic when other entertainment avenues were closed.

Alphabet owns the world’s most widely used search engine, Google. The search platform contributed $104 billion to Alphabet’s total sales in 2020, making up half of the behemoth’s total revenue. Google has been the market leader in online advertising for well over a decade and is expected to command nearly a 29% share of digital ad spending globally in 2021, according to eMarketer.