View our NASDAQ 100 page[1] for analysis and news for tech stocks, FANG, and more.
What is FANG?
FANG is the acronym for a basket of four large-cap stocks in the technology sector listed on the NASDAQ[2] exchange comprised of Facebook, Amazon, Netflix, and Google. Mad Money’s Jim Cramer originally coined the term in February 2013, grouping them at the time because of their positive outlook, strong growth, and powerful presence in the technology industry.
Since then, the group has become nearly synonymous with the performance of US equities, as each is a highly weighted member of the S&P 500[3]. Due to their large size and popularity in the public, speculators and investors have come to view FANG stocks as a useful tool to gauge market sentiment[4] and risk trends. Particularly during earnings season, the collective performance of FANG companies can have a substantial impact on the direction of US equities as a whole, dragging an index down with a poor performance or pushing it higher on the back of a beat.
Further, considering their collective contribution to US output FANG stocks can also serve as a key barometer for US economic activity. If a string of poor corporate results from the group occurred, it could be an early signal that a broader economic slowdown is on the horizon. Similarly, if the corporations were to highlight risks like concern over trade or decreased demand because of falling disposable income, investors could interpret these matters as threatening for the entire market.
What about FAANG?
Popular expansion of the original four, the acronym FAANG includes the additional member Apple. Apple is afforded the honorary inclusion because of
