What Does “FANG Stocks” Mean?

The term “FANG Stocks” is tossed around a lot these days when watching and reading about the latest stock market news. “FANG” is actually an acronym coined by CNBC’s Mad Money host Jim Cramer, and it relates to the four biggest and best performing tech stocks in the market, in the new Millennium; Facebook, Amazon, Netflix, and Google (which is now actually Alphabet, Inc.). These are perhaps the four most famous brands (tech or otherwise) and have performed the best over the last few years.

Below are some performance return stats that show just how well the “FANG” stocks have performed the last 5 to 15 years, respectively (when compared to the S&P 500). And by “performed” I actually mean “beaten” the market handily.

Best Stocks for Millennials

Facebook Inc. (FB)

Over the last 5 years, Facebook (FB) has beaten the S&P 500 by 24%.
(Facebook/FB stock performance returns via Morningstar).

  • 1 year returns: 36.39%
  • 3 year returns: 33.06%
  • 5 year returns: 39.10%

Amazon.com Inc (AMZN)

Over the last 15 years, Amazon.com (AMZN) has beaten the S&P 500 by 23%.
(Amazon/AMZN stock performance returns via Morningstar).

  • 1 year returns: 35.16%
  • 3 year returns: 41.27%
  • 5 year returns: 35.62%
  • 10 year returns: 29.57%
  • 15 year returns: 32.08%

Netflix Inc (NFLX)

Over the last 15 years, Netflix (NFLX) has beaten the S&P 500 by 29%.
(Netflix/NFLX stock performance returns via Morningstar).

  • 1 year returns: 64.37%
  • 3 year returns: 35.58%
  • 5 year returns: 67.75%
  • 10 year returns: 49.56%
  • 15 year returns: 38.57%

Alphabet Inc A shares (GOOGL)

Over the last 10 years, Google (GOOGL) has beaten the S&P 500 by 3%.
(Google/GOOGL stock performance returns via Morningstar).

  • 1 year returns: 32.77%
  • 3 year returns: 18.02%
  • 5 year returns: 21.72%
  • 10 year returns: 10.81%

So over the last 5-15 years, all of the aforementioned “FANG” stocks (Facebook, Amazon, Netflix, and Google) have beaten the market by the healthy clip. But, will they continue to do so moving forward? I can’t predict the future, especially when it comes to picking tech stocks, but all four of these companies appear to be ready to continue that trend for some time now (in my opinion). I think any of these four “FANG” stocks are a great buy for Millennials, if you are looking to buy individual stocks. I personally don’t own any individual stocks, as I am an index man, but I wouldn’t argue buying any or all four of these stocks. In every sense of the word they are perfect stocks for Millennials.




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