What Are FANG Stocks?

The term “FANG” stands for four major American internet companies: Facebook (FB), Amazon (AMZN), Netflix (NFLX), and Alphabet (GOOGL) (GOOG). Apple (AAPL) was added to the acronym in 2017, leading it to be recast as “FAANG.” FANG stocks are well-known for their rapid growth in recent years, with each member more than tripling in value over the last five years. Despite the fact that their business strategies differ, they all rely on modern technology to attract and keep customers.

FANG stocks like every other stocks in the stock market are subject to the vagaries of the economy. Fundamentally speaking, this could impact their bottomlines and/or erode any confidence the stock market has on their collectively perceived value.

So, to answer your question, FANG stocks will not continually beat the stock market. The reason is simple. Certain market/sector risk tend to have an undue impact on their individual stock prices.