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All You Need to Know About FAANG Stocks

Facebook, Amazon, Apple, Netflix and Google are popularly known as FAANG stocks. These are all US tech giants listed on the US market and part of the Nasdaq index.

The acronym has changed now as companies have changed their names. FAANG used to be an acronym for the top performing technology companies in the US - Meta (formerly known as Facebook), Amazon, Apple, Netflix, and Alphabet (formerly known as Google).

FAANG stocks have a huge impact on technology stocks across the globe. For instance, if they paint a rosy picture and show good prospects, technology stocks across the globe will do well. The vice versa is also true.

All the FAANG stocks have grown their market share over the years which has resulted in astronomical gains for investors over last decade.

These companies witnessed the maximum surge in their revenue and operating income even in a difficult time like Covid.

The advantage for FAANG stocks lies in the term ‘network effect’. This means, as these companies grow and attract users, they become more beneficial to customers. This in turn makes them more popular and they attract even more users.

Originally, there were only four stocks in the group and the acronym was ‘FANG stocks’. They were all internet companies, but the later inclusion of Apple made ‘FAANG’ a broader group of technology stocks.

Interested in finding such stocks in India? Check out India’s big tech stocks which could be India’s FAANG stock

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