Facebook, Amazon, Google, Netflix, Apple
Google Alphabet, Facebook, Amazon, Apple and Netflix are stocks named as part of Jim Cramer’s FAANGS (or Fang stocks). They’re considered some of the most desirable stocks, even though tech stocks haven’t done as well as other sectors in the past year.
Still, these stocks are well up year to date, and yesterday, they took another leap upward. Tesla and Microsoft are two others stocks that should be considered the cream of the mega caps in tech. As these charts reveal TSLA stock has seen more volatility and hasn’t risen in price despite Tesla’s sales success this year. The stocks characteristics similar to Bitcoin, yet Tesla has substantial real assets and business capabilities.
Google, FB, Amazon, Netflix and Apple price growth year to date 2021
When investors/advisors talk big tech, they’re mostly referring to Facebook, Amazon, Apple, Google and Netflix. These stocks comprise about a quarter of the S&P 500. Amazon offers its ecommerce and cloud dominance, Facebook it’s social media and advertising power, and Google its complete monopoly of Internet search. Netflix hangs in there with last minute reactive projects including their latest foray into online gaming which has driven their stock price to record highs.
NASDAQ Underperforms But 2022 is Ahead
Investors love Big Tech (i.e., FAANGS) because they’re invincible and they soar through good times and bad. Hard to beat as a solid investments and many advisors have them as a BUY rating. The full reopening of the economy plus big stimulus spending should make spring of 2022 a golden time for the economy and investors.
This year, Google and Facebook have been awesome up 65% and 31% each while Microsoft (replaces Netflix) is up 37% YTD. Add Tesla and Nvidia, two other companies succeeding well post-pandemic and you can see why investors want these big tech Faang type stocks.
Amazon, Apple and Apple have underperformed versus the S&P year to date 2021, while all are being beaten by the general S&P 500 index and the last 5 days.
Barchart gives Google Alphabet a 50% buy rating over the short term but a 100% buy for long term investing.
Barchart is less optimistic about Facebook, who have technical issues and plenty of media controversy of late. A recovering economy might not be as helpful to Facebook revenues, however their advertising monopoly with Google essentially guarantees success until the US government decides what to do with the company.
“And although investors can turn to other top performers during the economic recovery with impressive earnings (earnings stocks), the FAANG stocks just seem comfortable and familiar to many of them. “Tech is still a good play for many investors and a critical part of a longer term portfolio,” said Jim Baird, chief investment officer of Plante Moran Financial Advisors. “We wouldn’t tell people to move out of the tech sector because there are some great names there.” from CNN report.
The FAANG stocks Facebook, Amazon, Apple, Netflix, and Google are 5 key tech stocks every investor should know. They’re a big portion of the big stock indexes and on the S&P forecast or NASDAQ forecast. If you’re investing for the 5 year or 10 year periods, FAANGs are pretty safe plays.
Given their stability, security, and persistent profitability, they’re a primary tech stock pick for most institutional investors and those with 401k or retirement savings plans.
Here, a bull market commentator says not to worry, that the Faangs are through the October sell off and are ready to rocket whether interest rates rise or not. Certainly, the stock market forecast suggests 2022 is going to be great year, and Google stock at least is a good bet. Apple is struggling with microchip issues and trade worries with China. Amazon’s sales would likely fall as the retail economy comes back to life as Covid disappears.
Overall, the 2022 forecast for FAANG stock prices is positive for most of Jim Cramer’s FAANG stocks, but each has its own head winds. Apple stock price has become a little flat, but as we enter 2022, consumers will be looking for Apple 5G phones. See charts below.
Should you buy FAANG stocks? Some experts believe you should buy them and never sell. If you’re a long term investor, it is reasonable that these companies will come out shining through any economic outlook. It seems the economic outlook for the next 5 years is bright. But there is a lot to know about each individual stock.
Some analysts are turning negative on the FAANG stocks. They’re suggesting small business stocks will have greater earnings growth from 2020 to 2024. These companies are cash rich, have vital consumer data and minimal competition, and innovative business models that will help them adjust in any economic climate. There are almost 40 FAANG ETFs you might buy as well. Check the performance.
Investor’s Positive Outlook on FAANGs
The FAANG stocks were doing fine until the China tariffs set in. Earnings season brought everyone back to earth and either the FAANG companies didn’t want to pay out, or investors realized their China exposure was a big sell sign.
With Jeff Bezos leaving the helm of the Amazon ship and pushing off into space on Blue Origin, Amazon is getting more press, but will it be as successful and comfortable for investors in the post pandemic period? See more on the Amazon price forecast.
Betting against Amazon, given the shift to online shopping and cloud computing is probably not wise.
Google – Alphabet
Google’s revenue growth is the key issue for Google stock price for many investors, as it’s all about future earnings. Google’s ad revenue, including its revenue from Youtube are something to focus on. See more on the GOOG stock price forecast.
If the monopoly type companies under perform, the talk about anti-monopoly action might die down. However, these companies have plenty of threats during a highly volatile, transitionary economy. Take a look at Longforecast’s Google outlook for 2021.
Apple’s fortunes have fallen quickly. Revenue’s continue to fall although the company is making adjustments with a focus on services. Apple stock price just hit an all time high. Apple’s cost control issues foretell vulnerability to big stock market corrections or perhaps a price crash in 2022? Still, take a look at Moneymorning’s prediction that Apple’s stock price would reach $300 by 2020.
Facebook stock price has had a steady decline since last summer. Last year Facebook missed projections and the stock price plummeted 25%. Facebook has a huge customer base and they don’t share revenue with anyone almost, unlike Google who pays out revenue share to publishers. See more on the Facebook stock outlook.
Some feel Facebook is massively undervalued and it may only be the limited imagination of its management that’s stopping it from big growth. It’s looking to buy an internet security company to help it avoid data breaches. Hear Paul Schatz, Heritage Capital president and chief investment officer bullish outlook of $200 per share. It’s now $247 per share!
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* the above post includes opinions of the author and do not connote recommendations of any kind regarding stocks to invest in. The material is provided as information only.