What are FAANG Companies?

FAANG is an acronym that refers to the stocks of five of the most prominent companies in the world. The term was popularized by Jim Cramer, the television host of CNBC, who praised these businesses for being quality companies dominating in their respective markets.

1. Meta (Formerly known as Facebook)
   Meta, the social networking giant, is one of the most well-known companies in the world. Founded by Mark Zuckerberg in his dorm room at MIT, Meta has grown into a global giant. Outside of Facebook, they also own and operate Instagram, WhatsApp, Threads, and other platforms and services.

2. Amazon
   Amazon, just like Meta, has humble beginnings. What started out as an online bookstore has turned into “The Everything Store”, under the leadership of Jeff Bezos. Amazon today acts as a marketplace that connects buyers and sellers, while also operating other services such as Prime Video, Amazon Web Services, and several others.

3. Apple
   The brainchild of the late and great Steve Jobs has grown to be an international giant. The company’s products such as its computers and the ever-popular iPhone series are used all over the world. While Apple might be best known for its various consumer electronics, it also offers a host of software services such as iCloud, Apple Music, Apple TV+, and more.

4. Netflix
   Netflix brought on the streaming revolution and has maintained a strong market share and position since it shifted away from DVD rentals and moved into the streaming industry. While Netflix nowadays has several large and influential competitors, they’re still one of the largest and most influential companies in the industry.

5. Alphabet (The parent company of Google)
   Alphabet is, just like the other companies under the FAANG umbrella, one of the most influential and most important companies of the 21st century. While Alphabet is mainly known for the Google search engine, the company also owns YouTube and provides a myriad of other services such as Google Docs, Gmail, Google Ads, and more.

The growth achieved by these companies over the past two decades is among the most enduring ever measured in such a short time period in worldwide business history—both regarding revenue and earnings. From an investment perspective, they are recognized for their strong and enduring competitive advantages, their unmatched growth over the last two decades, and how large they have become in terms of market cap.