The understandability of FAANG+M
Luca Tobagi. Investment Strategist
Six stocks alone have pulled the S&P 500 to record highs. Let’s put their performance over recent years into context.
One of the phenomena that might mark the history of financial markets over the last years is the enormously positive performance of six stocks, whose prices have gone up so much to pull the S&P 500 to record highs and which have seen their weight in this index triple to almost 21% in the seven years between 2013 and 2020.
The stocks are Facebook, Apple, Amazon, Netflix and Google (now Alphabet), the famous FAANG. To these five stocks we have to add Microsoft, especially since it regained the top spot as the world’s most valuable company: FAANG + M. In six charts, we take a historical look at their performance, review their weight, price/earnings multiple, revenue and earnings growth and relationship between P/E multiple and growth rate.
For our more in-depth assessment click here.