What Are FAAMG Stocks?
FAAMG is an acronym for a group of five American technology stocks: Facebook, Apple, Amazon, Microsoft and Google. Given the tech behemoths behind each of these stocks, they have been centerpieces in millions of stock portfolios. Here’s what you need to know about FAAMG stocks.
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Overview of FAAMG Stocks
FAAMG refers to a group of popular technology stocks: Facebook (now Meta Platforms, Inc.), Apple, Amazon, Microsoft, and Google (now Alphabet Inc.).
These growth stocks are notable for their dominance in their respective sectors and have soared to high valuations as a result. Their combined market cap is over $7 trillion as of April 2023.
Each of these companies has seen its market cap grow substantially in recent years thanks to their dominance. All five are in top 10 worldwide by market cap, with Apple and Microsoft at No. 1 and No. 2, respectively. Alphabet (Google) and Amazon are number four and number five, and Meta (Facebook) is number nine. Meta is the only company of the bunch with a market cap under $1 trillion; the company is currently valued at $551 billion.
FAAMG stocks can do quite well at times. For instance, Apple stock is up 287% over the past five years, and Microsoft stock is up 214% over the same period. However, FAAMG stocks have struggled more recently, with Amazon down 38% over the past year and Alphabet down nearly 26%.
FAAMG vs. FAANG Stocks
FAAMG is simply the latest evolution of this group of tech giants. Initially, the group comprised only Facebook, Amazon, Netflix and Google. Apple was eventually added and the acronym became FAANG. However, Microsoft has since supplanted Netflix. The popular video streaming service lost its status as a FAANG stock as its growth slowed.
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The Rise of FAAMG Stocks
What Are FAAMG Stocks?
Over the past five years, FAAMG stocks have risen rapidly, and several factors have…
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