2022 shares: FAANG shares price watching within the new yr?

The term “FAANG” was first coined in 2013 by Jim Cramer, host of the CNBC network, who described the companies as “completely dominant in their markets”. The acronym refers to Facebook (now Meta), Amazon, Netflix, Google (now Alphabet), and the laggard Apple, which was added to the acronym in 2017.

Together they make up five of the ten largest companies in the world by market capitalization. Apple alone is worth a staggering $ 2.9 trillion, and together the five are worth roughly one-fifth of the US benchmark index, the S&P 500.

With all five listed on NASDAQ, there are two competing theories about the long-term future of FAANG stocks. Some investors see them as primary targets for a potential tech bubble burst. Others believe their overwhelming market dominance could send them soaring significantly higher.

What is widely recognized, however, is that FAANG shares are going nowhere for the foreseeable future. And that makes them excellent candidates for long-term investments. Of course, no investment is completely risk-free. From the tulip mania of 1637 to the pandemic-induced mini-crash in March 2020, market corrections are woven into the investment structure. But in the long run, stock prices have risen exponentially. In fact, the S&P 500 is up 3.756% since it was launched in 1981.

And while UK FTSE 100 stocks are also prime candidates for ultra-long investment, keep in mind that of the original 100 companies that made it into the index in 1984, less than a third remain. Of course, some argue that index investments are a better choice than investing in individual companies. However, others feel that sacrificing some stability for better returns is better. A middle ground could be to invest in one of the many Exchange Traded Funds (ETF) available on IG that invest heavily in the FAANG stocks.

Shares 2022: advertising giants

With a market cap of $ 1.95 trillion, Google (alphabet) has become a slang verb. “Google it” is synonymous with internet search, and the third quarter results show the advertising power of this internet giant. The YouTube owner’s revenue rose to $ 65.1 billion from $ 46.1 billion in the year-ago quarter, while net income rose to $ 18.9 billion from $ 11.2 billion. And the lion’s share of that revenue ($ 53.1 billion) came from advertising, compared to $ 37.1 billion for the year-ago quarter.

In addition, CEO Sundar Pichai emphasized that “our cloud services help companies continue their digital transformation and move to hybrid work to collaborate and stay secure”. Cloud revenue rose to $ 5 billion from $ 3.4 billion last year. And since few other operators have the financial strength to compete in the cloud computing space, they have tremendous opportunities to grow further. Antitrust lawsuits may be its biggest future problem, however, after an antitrust appeal against an EU fine for favoring its price comparison service over its competitors was recently lost.

The second FAANG stock, priced at $ 335 per share and a market cap of nearly $ 1 trillion, is Facebook (Meta) (NASDAQ: FB). It’s the largest social media company in the world – in its third quarter results, revenue grew 35% to $ 29 billion and its daily active users increased 11% to 2.81 billion people. That is almost half of the world’s population. Additionally, fourth quarter revenue forecast is between $ 31.5 billion and $ 34 billion. The company says it has more than $ 58 billion in cash that it will likely use to transform itself into the center of the “metaverse,” a third generation virtual reality Internet. And with the recent acquisitions of Instagram and WhatsApp, his pole position is unlikely to be questioned in the medium term.

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