The promise of the FANG
FANG is an acronym that represents four stocks: Facebook (FB), Amazon (AMZN), Netflix (NFLX), and the onetime Google, now Alphabet (GOOG, GOOGL). It is safe to say that FANG is now FAANG. Many claim that there is a third ‘A’ that
belongs to Apple (APPL). Trading of all of these stocks is done on the NASDAQ
exchange. These amount to every pivotal area of user-friendly technology.
The FANG companies intertwine with all of our lives so much that you would have to live under a rock to never come across these names. They are used so much in our
day-to-day lives, and they are almost always used simultaneously. You must have
come across this article on Google while researching on your iPhone while
popping onto Facebook for a quick little status update. Amazon has obviously
taken over our lives in every single way imaginable. And Netflix, it’s every
millennial’s crutch. It was not surprising when stock whizz, Jim Cramer grouped
these pioneering companies into FANG.
Facebook, established by Harvard dropout, Mark Zuckerberg way back in 2004, only became public in May 2012. Right then, it was sold for $38 per share. In July 2013,
the rate dropped to $25.88, and that placed doubt in a lot of people. They
thought Facebook was not ready for its big break on the NASDAQ. But then, the
social media sensation took off on a booming rise and has never looked back
since. Facebook is so marketable for various reasons but one of them is its
ability to monetize web presence for the purpose of advertising. Facebook earnings to date is a major reason why investors see this as a potential investment. Facebook has acquired so many brands under its name, one of the biggest ones being Instagram that has over 700 million users.
Amazon founder, Jeff Bezos is a revolutionary. He is not only is constantly replacing
mom-and-pop stores with e-commerce but also has opened brick-and-mortar shops and web services. He has a novelty section on the e-commerce website called the AmazonBasics and they offer all the essentials you need. Prime subscriptions have changed the entire game. Their rates are extremely cheap rates as low as $12.99 and even lower for students at $6.49. These facilities have made Amazon an unbeatable element in the stock market because the e-commerce giant shows no signs of loss. The
margin of risk is so low that Amazon is almost too close to posing a checkmate to other tech companies.
Apple, after the death of founder Steve Jobs, was expected to slow down in its innovative
streak and it certainly did. The Apple Watch tanked significantly in the market
and the iPhone has hit consumer fatigue. However, its numbers have never shown
a major slide because Tim Cook, the company’s current CEO has new plans for
minting cash. AAPL was named the world’s most valuable brand by Forbes, due to
its unbelievable market cap at $780 billion. Apple held the same prize for
seven years in a row.
Netflix is another huge heavyweight that has made its way into the mainstream and lives on subscriptions. Almost everyone has a Netflix subscription because again, the
prices are between $7.99 and $11.99 per month. They are super affordable by
anyone who has a phone. Investors are always sceptical about investing in a
subscription-based company. But Netflix has been seeing many ex-cable
subscribers switch to Netflix and there are still a lot more to go.
Started as BackRub by two Stanford graduates, Google truly became one of the biggest
masterpieces of its time. Like Amazon, Google has also taken over every life in
some of the other way. Alphabet’s market cap may be anywhere near $648 billion dollars and makes it the only possible contender to Apple as the world’s most valuable company. Even after all these years, Alphabet continues to grow rapidly and there is no doubt it is going to continue to be a resounding success in the years to come.