Last Updated on November 25, 2021 by Admin
FAANG is most popular word which people searched on Google during the year 2020 but do you know about FAANG. FAANG word is derived from arranging first alphabet of the five most popular and best-performing American technology companies: Facebook, Amazon, Apple, Netflix and Google. When those first five alphabets combined then new word emerged as FAANG in the world of stock market. This term was initially used as FANG in 2013 and later on Apple was added to this acronym during 2017 then it became as FAANG.
What does FAANG stand for?
Here is the answer: –
F for Facebook
A for Amazon
A for Apple
N for Netflix
G for Google
Why FAANG became so popular in 2020 and why people searched FAANG on internet?
After the COVID-19 breakout all over the world during early months of 2020 most of the countries had imposed lockdowns. People were sitting at their homes and most of them were dependent on internet. They were spending most of their time on their mobile, social media like Facebook, Amazon Prime, Netflix and YouTube etc. Demand for new mobile phones, Apple phones was very high.
Uses of these OTT platforms and mobile phones was all time high at that time due to which popularity of FAANG companies was extremely high. This led to huge rise in these stocks and millions of people started looking to invest in these stocks.
Every day thousands of people were searching for FAANG companies to know about their stocks position on share market. These stocks are listed at NASDAQ, These five companies combined account share for approximately 17% of the S&P 500 and about one-third of the Nasdaq 100 Index.
Popularity of FAANG in India
After the breakthrough popularity of FAANG companies stock in US market, even people in India also started taking interest in investment of those stocks. Most of the Indian broking companies started offering services and facilities to their Indian investors for doing investment and trading in overseas share market, specially for USA.
Indian investors got very easy and user-friendly mobile apps for doing investment and trading in the US markets including FAANG stocks. The demand of these FAANG stocks also got boost because during last year 2020, millions of new and young investor have opened their trading accounts and entered to domestic as well as overseas share markets as this was the simplest way to make money online without any hassle.
How Indian investor can invest in FAANG stocks or Overseas share market?
Government of India with regulations setup by Reserve Bank of India (RBI) allow Indian citizens or investors to invest in the overseas market. As per liberalized remittance scheme (LRS) of RBI, an Indian individual investor can invest upto US$ 250,000 each year overseas.
For that, you basically need a trading account with recognized share broking firm/company in India same like you do share trading in Indian market. Most of the broking firms in India offers overseas trading account facilities and mobile apps etc.
It is also very interesting to mentioned that in US share market you need not buy full or complete share of the companies, they allow to buy even fractions of share/stock of the company. This means that you can even buy less that one share of a particular company including FAANG.
This is very very significant for those who don’t have much money to buy quite expensive shares of companies like Facebook, Amazon, Apple, Netflix and Google.
However due to fractional trading facility, an investor can buy fraction of these stocks. So such kind of facilities and options made FAANG so popular in India as well.
These stocks have given their all time high return to their investors during last year and till now they are on top and most popular choice of the investor throughout the world.
Why Microsoft is not in FAANG ?
There is no specific reason for not taking Microsoft in this combination of top tech companies but it seems like it does not fit under the cute abbreviation as FAANG. Although Microsoft already has big market capital base as compared to FAANG companies. Secondly, “FAANG” is purely based on stock performance and not just “BIG company” for this purpose.
Whether investing in FAANG stocks is safe?
Undoubtedly everybody knows that these top tech companies in the world are doing extremely well. Most of the people in the world are connected this way or that way with Facebook, Amazon, Apple, Netflix and Google and majority of world’s population is using mobile phones and even laptops and other social media gadgets etc.
The use of social media and digital platforms such as OTT have drastically increased since last year. These companies have long time bright future with their passionate leaders.
So considering these facts, there is no second thought about performance and future growth of these companies. Holding these stocks in investment portfolio lead to create wealth for the investors without any doubt.
However prices of every stock keep on changing according to overall position of stock market and various other factors affecting economic and market positions. For better returns from stock market, it is always better to invest for longtime.
What is future of FAANG ?
Being Tech and social need companies, Facebook, Amazon, Apple, Netflix and Google are capturing market like upward curve and millions of people are connecting every day with them, infact people and businesses are dependent on them. They can’t even imagine their life without using services and facilities of these companies because people not have much options but to take their services/subscriptions etc.
These companies have monopoly on social media now. There user, customer and client base will always be in upward position every time in future. They are the essential pillars of digital world. Every country in the world is moving very fast towards digitalization and FAANG have contributed to this path throughout the world.
Even digital and social media platforms are changing, upgrading and updating very fast every moment and expanding everywhere like anything. Considering those facts we can foresee the wonderful future of FAANG companies.
We hope that you find this article useful. Please share your thoughts in comment section.
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