Faang Stocks (Meaning) | List of FAANG Companies - YouTube

Channel: WallStreetMojo

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hello everyone hi welcome to a channel of WallStreetmojo watch the video
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till the end and also if you are new to this channel then you can subscribe us
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by clicking the bell ican today we have a topic with us as Faang Stocks now
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the word itself seems to be quite fancy one but we'll try and understand in a
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very simplest manner we have a graph over here for Facebook Amazon Apple
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Netflix alphabet and so on and so forth right and we have amount in terms of
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billions and trillions well first let's well first let's start and understand
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let's understand what exactly what are this stocks or so called Faang stocks
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okay let's begin now see when we talk about stocks what comes to our mind is
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stock market right that's the first and the foremost thing that comes into your
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mind and companies trading into this ups and downs of indices risks and returns
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and when you when you when you hear this term called Faang stocks what is the
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force curve what is the first thing that comes in your mind so Fang are nothing
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but stocks there is listed in the New York Stock Exchange okay for the
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companies like Facebook Amazon Apple Netflix Google right so this companies
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were normally trading until mid 2017 okay when people started recognizing
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this drastic moment in the market and indices they found that this companies
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are huge enough and as they constitute the major composition of the invoice a
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that the Wall Street and the CNBC grouped them together and started
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calling them as called Fang stock that is f-a-a
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and G Facebook Amazon Apple Netflix in Google right so they make up around at
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least 12% of the S&P that is the Standard & Poor's 500 index so you can
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imagine what is the importance okay now we'll go with some of the facts
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regarding this particular stocks see the ticker for this companies on the Nasdaq
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and the current price that are trending is something as follow I'll show you
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that it looks something like this you see for Facebook the ticker FB this
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are the acronyms or you can say the small letter word that has been jumbled
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up now what are the current market prices for Facebook 159 1971 what is
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the market cap and the total volume this are all the details now the market price
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of the stock over here that is the current market price on the Nasdaq this
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is as on October 2 2018 closely around our 4:00 p.m. okay the market
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capitalization this is completely in terms of billion dollars okay and the
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data is on the October 2 2018 so does it has seen that you know of the total
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volume of 22 if you see for 2.3 billion closely around that if you add up some
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of all the total volume that comes down to is 22975045
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61 that's closely around 2.3 billion that is reported by the Nasdaq
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trader.com as on the you know October 1 2018 and the total volume traded for
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Faang stocks was 73 489 363 that is closely around $72 million so
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additionally the total market capitalization for Nasdaq is
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approximately 30 trillion okay reported on the Nasdaq on Jan 22 well this talks
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alone they make up 3.5 trillion so you can imagine
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what is the level of significance this stocks faang stocks carry that is 11%
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so this is closely around 11.67 see as on
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October which is closely around 10% of the nation's total market cap
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so you can imagine what is the level of Faang stocks in the country itself
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of United States now how the stocks affects the indices we understood the
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facts now we will try and understand the effect of such on the nicest see as seen
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in the analysis over here the faang stocks take up a huge chunk of the
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market cap in the exchanges which is why the moment in such stocks affects the
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whole index now it can be well understood that although this although
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being just a handful of stocks if they have hold a good market strategy they
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are good enough to make or shake you can say the market and the effect not only
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their own shareholders but also the entire shareholder strength now the
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question over here many many will have is that are the stocks risky well since
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they hold up a major share in the stock prices an investor needs to invest a
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quite good amount to purchase the fangs so they are part of the best investments
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for the investors since over the period of time they have evolved very well and
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paid good returns however you know investing in this portfolios alone seems
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quite risky so all this Fang are fine companies
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Facebook Amazon Apple Netflix and Google they are a part of the tech industry so
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portfolio investment have basic concept of you know their versified the risk to
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gain the maximum return so those investing only into the stocks may bring
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good returns as this companies grow but just if there is there is any major
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event offs or slow down stocks can together bring total losses so most of
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our major investment firms and mutual funds if you see
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have a combination of the stocks and other smaller stocks which help them to
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diversify their portfolio and investing otherwise each of the stocks requires in
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a good amount of money hence an investor force needs to arrange to buy such
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stocks now if in case this do not get give
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expected return in future due to any event the investor would lose quite up
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at lot I mean in terms of wealth office after the stocks and hence it is
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advisable to diversify these portfolios another important point which we should
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be noted that you know since this Giants are the best in the fields they create
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monopoly in the market and there is hardly any competition for them so which
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is why they may rule the market and they may grow really powerful in the near
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future and investing in this stocks may seem to be a quite a wise decision now
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but the future gets completely insecure over there know there are some key
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points to be remember remember while trading into faang stocks see investing
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in faang stocks is nothing wrong however one needs to be cautious into into their
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investments and some points to be noted our first diversification of this
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portfolio is very important now if the investor deals into individual stocks it
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becomes primary reason for him to hedge this risk related to the stocks and the
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fangs are can be given a quite good returns for a while but the market are
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very volatile right and and and and the risky nature cannot be ignored
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second regular study of the market markets you know to check the what we
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call as the track performances so the investor should not be under any notion
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that the stocks will always be paying well a good investor is always you can
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say well-informed okay searched analyst and only by the regular
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track of the momentous stocks and the market can be expect good returns third
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be balanced now this means are investing in any other industries and markets as
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well investing in faangs is like investing in
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only tech industry and diversification is required not only with the other
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stocks of the same industry but also with other industry so with fangs an
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investor would be sitting on one side of the board and if there is too much
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weight on the side this board may be toppled downwards so he needs to
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perfectly balance things around and there is a lot of analytical tool which
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provides good information about the portfolio beta so after all of this
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discussion let me make a final conclusion on this particular topic
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see there's it is seen that you know the grass is not always the green an
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investment into the Faang but needs to keep in mind about the risk it involves
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and additionally only he is not the one who key who reads the stocks there are
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millions millions of other investor who have the same reading about this about
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this fine stocks and the market sentiments so there's a lot of
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competition out there and there are lot good players who are very well aware of
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how to make money and hence it becomes extremely important to understand the
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markets well and not just go by the projected growth or the returns that has
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been declared so that's it for this particular topic if you have
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learned and enjoyed watching this video please like and comment on this video
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Cheers