Investing 101 WTFinance: FAANG Stocks Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on Tumblr (Opens in new window)Click to share on Pinterest (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Dan Miller Published Jun 15, 2022 - [Updated Jul 6, 2022] 2 min read Advertising Disclosure The views expressed on this blog are those of the bloggers, and not necessarily those of Intuit. Third-party blogger may have received compensation for their time and services. Click here to read full disclosure on third-party bloggers. This blog does not provide legal, financial, accounting or tax advice. The content on this blog is "as is" and carries no warranties. Intuit does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. After 20 days, comments are closed on posts. Intuit may, but has no obligation to, monitor comments. Comments that include profanity or abusive language will not be posted. Click here to read full Terms of Service. In the tech world, FAANG refers to five popular technology companies: Meta (formerly Facebook), Amazon, Apple, Netflix and Alphabet (formerly Google). In personal finance, FAANG stocks refers to the stocks of these five companies. These five companies are five of the biggest companies in the world, and historically their stocks have performed very well. What are FAANG Stocks? FAANG stocks are the stocks of five major technology companies: Meta (formerly Facebook) — (META)Amazon — (AMZN)Apple — (AAPL)Netflix — (NFLX)Alphabet (formerly Google) — (GOOG) All five of these companies trade on the NASDAQ index and all five are part of the S&P 500 index. As of June 2022, Apple is the most heavily weighted stock in the S&P 500, and Amazon and Alphabet (Google) are both in the top 10. Meta (Facebook) is just outside the top 10 at 12th, and Netflix, after a significant recent price drop sits at 92nd in total market capitalization. Why are they called FAANG stocks? The term FAANG comes from the first letters of the five companies. Jim Cramer, the host of CNBC’s Mad Money finance show, popularized the term around 2013. The term was originally FANG stocks (with a single A), but Apple was added around 2017. Google and Facebook also changed the name of their company (to Alphabet and Meta, respectively) but the acronym FAANG is still used with the old company name. FAANG stocks example FAANG is a term that is used for more than just the company’s stock — it’s used to refer to Big Tech in general and these five companies as a whole. The good news is that it is very easy to own any of the FAANG stocks individually, since they are all publicly traded. The thing you’ll need to watch out for however is that they are often more volatile than the stock market in general. You may want to instead consider investing in an S&P 500 index fund, which has a high weight of FAANG stocks due to their high company valuations. Are FAANG stocks a good investment? Whether FAANG stocks are overvalued or not depends on your particular investing philosophy. There is no denying that the stocks for each of these five companies have historically done very well. However, past results are no guarantee of future returns. Many investors disagree about whether they are overvalued or a good investment. You should do your own research before making any investment decisions. The Bottom Line FAANG is an acronym for five of the biggest technology companies — Meta (Facebook), Amazon, Apple, Netflix and Alphabet (Google). FAANG stocks refers to the publicly traded stocks of these five companies. The term has gained popularity over time, becoming a shorthand for large technology companies in general. Previous Post What to Consider When Buying Your First Investment Property Next Post What Are The Hidden Fees of Crypto/NFTs? Written by Dan Miller Dan Miller is a freelance writer and founder of PointsWithACrew.com, a site that helps families to travel for free / cheap. His home base is in Cincinnati, but he tries to travel the world as much as possible with his wife and 6 kids. More from Dan Miller Follow Dan Miller on Facebook. Follow Dan Miller on Twitter. Browse Related Articles Mint App News Intuit Credit Karma welcomes all Minters! Retirement 101 5 Things the SECURE 2.0 Act changes about retirement Home Buying 101 What Are Homeowners Association (HOA) Fees and What Do … Financial Planning What Are Tax Deductions and Credits? 20 Ways To Save on… Financial Planning What Is Income Tax and How Is It Calculated? Investing 101 The 15 Best Investments for 2023 Investing 101 How To Buy Stocks: A Beginner’s Guide Investing 101 What Is Real Estate Wholesaling? Life What Is A Brushing Scam? Financial Planning WTFinance: Annuities vs Life Insurance