The term FANG is actually an acronym for the four American prominent Stocks; Facebook (now Meta), Amazon, Netflix, and Alphabet or Google. FANG stocks are the most famous stocks in recent years because the growth tends to double over the past five years. In 2017, there is also a famous acronym called FAANG, the analysts added Apple in the big four. Bob Land in The Street manifested this term called FANG. Later on, Jim Cramer on his CNBC TV show called Mad Money popularized this term. Now, this term is famous and mostly used by many financial and markets analysts and commentators.
These stocks are both famous and valuable at the NASDAQ exchange covering approximately 3000 American technology companies. Mostly, those companies involved in NASDAQ exchange are growth investments, although not all of them could match the growth of FANG stocks. Although FANG are the most successful stocks, their stock business models are quite different from many others. Hereby some detailed elaborations on each FANG business models.
Facebook or now Meta is the world’s most used social networking platform. Its monthly user-base is more than 2.85bn people by April 2021. In other words, Meta could actually say that 35% of the world’s populations are its customers. So, in order to monetize this user base, Facebook sells advertisements targeting the personal preferences of their users as well as usage patterns. Meanwhile Amazon sells a retail catalog. It is famous for business-to-consumer e-commerce platforms using cloud computing and data analytics. Initially they pioneered online sales, and in 2020 the firm has sold products to over 300m of their users in the U.S. only. Half of their users are choosing to subscribe to its membership service called Amazon prime.