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Derived from each company’s name, the FAANG stocks are known for their explosive growth rate. The five companies comprise a significant chunk of the S&P 500’s overall market capitalization and are considered a crucial bellwether for the exchange. Major stock swings often translate to the broader market.
All five companies are known for their dominance of their respective industries and sizable customer bases – Facebook in social media, Amazon in e-commerce, Apple in smartphones and other tech hardware, Netflix in the video streaming sector and Google in online search and services. Each stock trades on the Nasdaq exchange.
The FAANG stocks have a combined market capitalization of nearly $5 trillion. Apple and Amazon alone are each worth more than $1 trillion.
The New York Stock Exchange’s FANG+ index tracks the performance of the five eponymous stocks and five other top performers in the tech sector. Other members include Alibaba, Baidu, Nvidia, Tesla and Twitter.
While many other U.S. companies have reported major interruptions to business during the coronavirus pandemic, recent earnings reports showed the leading tech stocks avoided the worse of the situation.