The acronym “FANG” stands for Facebook (now Meta), Amazon, Netflix and Google. Facebook is the biggest and most famous social media in the world with more than 2.5 billion users.
FANG Stocks Explained
Amazon is the world leading e-commerce platform. Netflix is one of the biggest and most famous streaming services in the world. Google is the most famous and used search engine in the world with other successful businesses like YouTube and the mobile software Android.
These stocks trade on the NASDAQ and are known for their incredibly fast growth over the years. They are part of those stocks called “growth stocks” that generally don’t pay dividends because the companies want to reinvest the profits to grow even more.
The downside of growth stocks like the FANGs is that they are particularly sensitive to risk sentiment in the market and they generally lose the most when risk aversion prevails.
