'These giants may be majestic but it is not impossible that there will be opponents later.'
Facebook (now Meta Platforms); Amazon; Apple; Netflix; and Google (now Alphabet) or the abbreviation 'FAANG' are companies whose share value includes 15% of the entire S&P 500 Wall Street index.
The term was first introduced by TV personality and equity analyst, Jim Cramer in 2013 to refer to the influence of companies in the risky asset market in the United States (US).
According to Cramer, the high growth rate of these companies' shares and their connection with digitization and the internet allow them to be placed in the same category.
The combined market capitalization of the FAANG companies reached $4 trillion, indicating that it is not only the most important technology industry in the US but also a large part of the country's entire major market.
In addition, FAANG stocks have experienced 3-digit growth since 2015 until now where:
Facebook saw its stock rise 165% in 2015.
Apple's stock surged 272% in 2015.
Amazon once enjoyed a 405% jump in its stock in 2015.
Netflix had a 348% rebound in its stock in 2015.
Google had a 113% increase in its stock in 2015.
As a comparative context to explain the importance of FAANG stocks, in that year the S&P 500 index only grew by 57%.
In general, technology-themed stocks are among the most frequently chosen by investors due to the trend and development of digitalization around the world.
Over the past few years, many technology companies have started listing with their initial public offerings (IPOs) on the New York Stock Exchange or NYSE on Wall Street.
And even though FAANG stocks are relatively expensive, often trading over $100, they are still seen as an option for investors who want companies with stable maturity performance.
