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FAANG stocks: Easy explanation [Video]

FAANG stocks: Easy explanation

In this video, you will learn everything you need to know about FAANG stocks.

#faang #tech #wallstreetmojo #stocks #stockmarket

Chapters:
00:00 – Introduction
00:28 – What are FAANG stocks?
01:06 – How do FAANG stocks affect indices?
01:50 – Are FAANG stocks risky?
02:56 – Conclusion

What are FAANG stocks?
Facebook, Apple, Amazon, Netflix, and Google, that’s what FAANG stands for. This is a group of the five most successful and popular companies in the world.

It was Jim Cramer that used the term back in 2013 to refer to these mammoths of companies that literally dominated their business and became influential stocks in the stock market.

(Explained in detail in the video)

How do FAANG stocks affect indices?
The FAANG stocks combined have a market capitalization of more than $5 trillion, with Apple having the highest, followed by Google and then Amazon.

These stocks make up around 15% of the S&P500 index and 30% of the NASDAQ index.

From the numbers above, you can see that these stocks are huge and take up a lot of space in indexes, so if the price of these stocks moves, it will cause the price of the index to move too.

(Explained in detail in the video)

Are FAANG stocks risky?
The FAANG stocks have been lucrative for investors for a long time now, but you know what? The pandemic affected these stocks a lot. In fact, it was the entire tech industry that was hit hard.

So yes, these stocks are risky to invest in. That’s why you need to be careful with them.

All of these stocks are in the tech sector. If your portfolio consists of these stocks only, then your portfolio is exposed to many risks due to it not being diversified.
This will be all for this video. Subscribe to the channel, give the video a like, and share it with others.

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