Is Meta Platforms Stock Still a Buy After Hitting a New 52-Week High? The Motley Fool

Tech-focused ETFs are also likely to include some if not all of FAANG stocks and offer similar exposure. The superpower of the FAANG cohort should make you wonder what are the best ways to invest in these high-growth stocks? If you don’t want to take direct exposure to individual stocks, you can always buy exchange traded funds, or ETFs, which track the performance of mega-cap technology stocks, including FAANGs. ETFs are the low-cost alternatives to mutual funds, giving you a choice and flexibility to buy many stocks through a single fund.

1. In 2019, it increased 19.3%, but that compares with 28.9% for the S&P 500 and 35.2% for the Nasdaq.
2. SmartAsset Advisors, LLC ("SmartAsset"), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S.
3. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed.
4. One thing that could derail these numbers, however, is if the ad market slows down.
5. Although at first some on social media thought the name FAANG would change to MAANG following Facebook’s rebrand, Cramer said the whole acronym deserved a revamp.

The changing environment has prompted Cramer and other tech investors to champion a new acronym for top tech stocks. While Netflix’s market cap has tumbled to just $130 billion, software and cloud services giant Microsoft (MSFT) has grown to a more than $1 trillion valuation. The FAANG stocks are all easy to acquire, in the sense that they are publicly traded companies with substantial daily trading volumes. They are also routinely included in popular exchange-traded funds (ETFs).

Terms & Info

The extraordinary size and influence of the FAANG stocks have prompted concerns about a potential bubble in FAANG stocks. These concerns started gaining prominence in 2018, when technology stocks, which had been driving consistent gains in the stock market, began losing their former strength. In November 2018, several FAANG stocks lost more than 20% of their valuations and were declared to be in bear territory. By some estimates, FAANG stocks lost more than a trillion dollars from their peak valuations as a result of the steep drop in the markets in November 2018.

"They're sitting at the edge between AI, the metaverse, the future of computing, and the way they do their partnerships, they're set up in a way that's going to be dominant for quite some time." Any ETF that has at least 1% exposure to each of the FAANG stocks can be called a FAANG ETF. And because of the FAANG importance in the financial world, there are more than 35 major FAANG ETFs. Apple is a leader in selling personal electronic devices that include computers, smartphones, smartwatches, and accessories.

The five FAANG companies

While many e-commerce sites show massive potential for investors, it’s important to remember that individual stocks also carry management risk. If you’re a newer investor, it may be a good idea to consider the individual stocks that make up major e-commerce ETFs before selecting individual stocks. With so many e-commerce competitors, analyzing top ETF holdings can provide investors with a simple route to pre-screened investment choices. The U.S. is far from the only country with a thriving e-commerce industry.

Companies that can leverage the latest technology to connect with changing consumer preferences may be in a more advantageous position to retain customers and market share. Some top trends driving the e-commerce market in 2023 and beyond include the following. While the FAANG stocks are fairly mature companies, they still seem to have a great capacity for growth. And the fact that they account for roughly 15% of the S&P 500, a bellwether for the entire stock market, means their performance often heralds trends in the US economy as a whole. Their proponents will argue that their valuations are justified based on their fundamental strength as businesses.

In the years that followed, Facebook grew from an unprofitable social media platform to a multi-platform online advertising behemoth. The e-commerce market has taken a significant market share, with every major individual retailer now offering some form of online shopping experience. Investing in e-commerce giants (and the tech companies that make the online buying infrastructure possible) can help traders prepare for the future of online sales.

Who coined the term FAANG?

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. The origin of the acronym has been attributed to Jim Cramer, the financial TV host and co-founder of The Street.com. Known for his slangy abbreviations lexatrade review and catchy phrases, Cramer coined the term in 2013 to represent four tech stocks with outsized market appreciation. Cramer believed that these companies belonged together because they are all high-growth stocks that share the common threads of digitization and the web. Meta owns two of the world's largest and most engaging social media apps (Facebook and Instagram) and two of the biggest messaging apps (WhatsApp and Messenger).

Alphabet Inc. (GOOGL, GOOG)

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. This includes a draft bill making it unlawful for large platform operators to own businesses that create conflicts of interest. Another bill would prohibit platform operators https://broker-review.org/ giving preferential treatment to their own products. US lawmakers have drafted a number of bills aimed at limiting the power of big tech companies, aiming to make it harder for them to acquire their competitors. All five performed exceptionally well during the pandemic, offering services like streaming and e-commerce that were in high demand while people were stuck at home.

Big tech has changed a lot during the 2010s and 2020s, and the acronym for the biggest tech stocks has changed, too. FANG became FAANG, then FAAMG or MAMAA, depending on whom you ask. The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. The five MAMAA stocks have a combined market cap of more than $6.6 trillion.

In addition to its e-commerce business, Alibaba has also invested heavily in new markets, such as cloud computing, digital media, and entertainment. For example, Alibaba Cloud, the company's cloud computing division, is one of the largest in the world and provides a range of services, including infrastructure, security and data analytics. This can make Alibaba a stronger e-commerce investment option for those interested in international, diverse exposure. However, the stock is commonly grouped with Facebook, Apple and Alphabet (Google) under the acronym FAAMG, which represents the largest publicly traded tech stocks based on market capitalization. Microsoftis the world’s largest software company and the parent company of the Windows operating system, LinkedIn professional social media platform and Xbox gaming brand. When Cramer first coined the term FANG back in 2013, Facebook’s market cap was just $65 billion and the company was less than a year removed from its initial public offering (IPO) in May 2012.

From smartphones and streaming to e-commerce and artificial intelligence. “What I saw today, when I watched Meta’s metaverse video, reminds me of why I created the FAANG acronym to begin with,” he said on his show Thursday. “The more money you have, the more ability you have to make bets on individual companies,” Centeno says. Some of the company initials that make up the acronym are no longer correct.

Are FAANG Stocks Hard to Acquire?

Here’s why the acronym keeps changing and what one financial advisor says about investing in big tech stocks today. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only.

However, you should be aware of the high risks involved, as CFD trading also magnifies losses if the share price moves against your position. One of the ways to invest in FAANG stocks is to buy the individual company shares on the US stockmarket via online brokers such as TD Ameritrade in the US, or Hargreaves Lansdown in the UK. The top five S&P 500 GICS tech stocks by market cap in 2022 are Apple, Microsoft, Nvidia (NVDA), Oracle (ORCL) and Broadcom (AVGO). Apple’s market cap has grown to $2.4 trillion, but analysts still see more growth ahead. The average price target among the 37 analysts covering AAPL stock is $180, suggesting 17.9% upside. However, the company announced a rebranding of Meta Platformslater that year to mark its shift in focus to building the metaverse, an online digital world in which users interact and live virtual lives.

Facebook made headlines in February 2022 when it lost $232 billion in value in one day when its stock dropped from $323 per share to $237 per share. FAANG companies’ dominance in major US indices is likely to remain unchallenged for many years to come. Cramer has proposed excluding Netflix from the group because it has not kept up with the others in terms of growth. That’s less than one-third of the market cap of Meta, the next smallest FAANG stock, and less than one-tenth of the market cap of the other three FAANG stocks (all have trillion-dollar market caps).