Earn your certification as a Financial Modeling & Valuation Analyst (FMVA)™. Register today!

FAANG Stocks

Facebook, Amazon, Apple, Netflix, and Google

What are FAANG Stocks?

FAANG stocks are the publicly traded stocks of U.S. technology giants Facebook, Amazon, Apple, Netflix, and Google (Google’s parent company is Alphabet). They are the most well-known and best-performing technology companies. Currently, the combined market value of FAANG exceeds $3 trillion.

 

FAANG Stocks

 

All the companies are traded on the NASDAQ Stock Market. In addition, Facebook, Amazon, Apple, Netflix, and Google are part of the S&P 500 Index, which includes the 500 largest companies by market capitalization listed either on the New York Stock Exchange (NYSE) or NASDAQ.

 

List of FAANG Stocks

 

#1 Facebook

Facebook, Inc. (Ticker: FB) is an online social media and social networking service company founded in 2004. The company’s primary business is the social network Facebook, which currently lists more than two billion active users around the world. Its primary revenue stream comes from online advertisements. Facebook also owns several prominent subsidiaries, including Instagram, WhatsApp, and Oculus VR.

In 2017, the company’s profit exceeded $35 billion, along with a net income of $16 billion. As of August 2018, the company’s market capitalization exceeds $500 billion.

 

#2 Amazon

Amazon Inc. (Ticker: AMZN) is a diversified technology company operating in e-commerce, consumer electronics, and cloud computing industries. The company was founded in 1994 as an online bookstore. Nowadays, Amazon is the largest e-commerce retailer in terms of market capitalization. The company owns several subsidiaries, including Twitch (live streaming platform) and Whole Foods Market (chain of supermarkets).

In 2017, Amazon reported revenues of $177 billion and a net income of $3 billion. The current company’s market capitalization totals more than $894 billion.

 

#3 Apple

Apple Inc. (Ticker: AAPL) is a technological company involved in the design and manufacturing of consumer electronics and computer software, as well as the provision of online services. Founded in 1976, Apple is the oldest company in the FAANG group. Although Apple was successful in producing computers, laptops, and computer software, the real breakthrough for the company occurred after 2007 after the introduction of its new mobile devices such as the iPhone and iPad.

Nowadays, Apple is the largest IT company in the world. In addition, on August 2, 2018, it became the first U.S. company with a market capitalization of over $1 trillion.

In 2017, the company reported revenues of $229 billion and a net income of over $48 billion. Presently, Apple is the most profitable company in the FAANG group.

To learn how to value companies and stocks, check out CFI’s Business Valuation Modeling Course.

 

#4 Netflix

Netflix Inc. (Ticker: NFLX) is a media provider that provides customers with subscription-based online streaming of films and TV shows. Recently, the company entered the content production industry, producing its own movies and TV shows.

Founded in 1997, Netflix is the smallest company in the FAANG group in terms of market capitalization (around $150 billion), revenues ($11 billion), and net income (above $550 million).

 

#5 Google – (Alphabet)

Alphabet Inc. is the parent company of Google. The company owns two classes of shares traded publicly. Class A shares (Ticker: GOOGL) provide the owner with voting rights, while class C shares (Ticker: GOOG) do not provide any voting rights.

Google LLC is the largest subsidiary of Alphabet. It is a well-diversified company that provides various online services, and designs and manufactures consumer electronics and software.

Google offers a wide variety of online services, including a search engine of the same name, email services (Gmail), office software (Google Docs, Sheets, and Slides), video streaming service (YouTube), etc. In addition, the company developed a mobile operating system called Android that is installed in the majority of today’s smartphones. Finally, the company produces consumer electronics such as laptop Chromebook, smartphone Pixel, and Google Home voice assistant.

In 2017, the company reported revenues of over $110 billion, while net income exceeded $12 billion. The company’s current market capitalization is over $850 billion.

To learn how to value companies and stocks, check out CFI’s Business Valuation Modeling Course.

 

Related Readings

CFI is the official provider of the Financial Modeling & Valuation Analyst designation for financial analysts. To continue learning and advancing your career, these additional resources will be helpful:

Corporate Finance Training

Advance your career in investment banking, private equity, FP&A, treasury, corporate development and other areas of corporate finance.

Enroll in CFI’s Finance Courses to take your career to the next level! Learn step-by-step from professional Wall Street instructors today.