FAANG is not a Chinese word. It is an abbreviation for Facebook (now Meta), Amazon, Apple, Netflix and Google (now Alphabet).
The acronym, popularized in 2013 by CNBC TV's Mad Money host, Jim Cramer, very quickly became part and parcel of the financial world.
Its original version was the FANG, but a modified version, with an added 'A', emerged in 2017, with Apple making part of it—the introduction of the Triple A.
The FAANG era is said to have led to the rise of these big-five tech companies. , which needs no introduction, had a combined market capitalization of US$7.1 trillion as of the first quarter of 2022.
At one time it became a habit to have FAANG stock with large investors around the world, and it would add to the ever-increasing momentum.
In the stock price of the big five tech companies. But in a world that is routinely unpredictable,
Even when the FAANG era was at its peak, there was debate among investors. The debate revolves around the question of whether FAANG's stock is overvalued.
Those who were strong supporters of the FAANG era did not believe that it was so.
His argument was that the value of shares derives from the enormous potential and strength of the big five tech companies.
Those who weren't buying this argument pointed out that despite the financial strength at their disposal,
The stock has become very expensive and, because of this, will not have an easy future for investors holding out for the long term.
Among them -term profit. He was referring to the "bubble" that FAANG stock has formed and he was sure it would burst someday. The latter group seems to be having the last laugh since late last year.