What Are FANGMAN Stocks?

| Updated
by Oluwapelumi Adejumo · 7 min read
What Are FANGMAN Stocks?
Photo: Depositphotos

The acronym “FANGMAN” was derived by traders to further examine the combined strength of the 7 biggest tech establishments in the stock market. Check everything you need to know about major players and their performance in the tech industry.

When the tech industry underwent an upheaval in the early 2000s, it changed the world’s financial landscape, with Silicon Valley, Nevada, becoming the hub of innovations and progress. Several tech companies came bursting out the 2000s to become household names and global spanning corporations providing services and products to billions of people. The biggest of them formed the so-called FANGMAN.

The acronym FANGMAN stands for Facebook Inc. (NYSE: FB), Apple Inc. (NYSE: AAPL), NVIDIA Corp. (NYSE: NVDA), Google LLC. (NYSE: GOOGL), Microsoft Corp. (NUSE: MSFT), Amazon.com, Inc. (NYSE: AMZN), and Netflix Inc. (NYSE: NFLX). They are the top seven tech companies, the biggest players on the tech scene. FANGMAN stocks represent concrete and bullish asset pool that investors have looked at with some favor. They allow investors to put money behind the juggernauts of industry. Their collective market capitalization of over $7 trillion, more than the entire GDP of several countries.

All these companies started from humble beginnings, moving from zero to world-renowned conglomerates. Facebook Inc. was formed at Harvard in 2004 by Mark Zuckerberg, Eduardo Saverin, Andre McCollum, Dustin Moskovitz, and Chris Hughes. Membership was first restricted to students of Harvard but later spread to other schools and the rest of the world. Zuckerberg currently owns Whatsapp, and Instagram, being the King of all social media. He became the youngest billionaire at the age of 23 and is worth around $109.9 billion as of April 2021.

Apple Inc. is a multinational tech-based firm. Steve Jobs, Steve Wozniak, and Ronald Wayne founded it back in 1976. The firm produces hardware products that encompass all iOS devices. It was spearheaded by Steve Jobs who died in 2011 and was then replaced by Tim Cook who was COO under Jobs.

NVIDIA Corp. is a tech-based organization that produces Graphics Processing Units for gaming units with the label “GeForce”. The organization was started in 1993 by Jensen Huang, Curtis Priem, and Chris Malachowsky. The firm is spearheaded by Jensen who acts as CEO and is valued at around $14.4 billion as of April 2021.

Google LLC. is an international establishment that was set up in 1998 by Larry Page and Sergey Brinn. It is also a major subsidiary of a conglomerate known as Alphabet Inc. With Sundar Pichai heading the company, Google specializes in Internet-related services and products and focuses on web-based search.

Microsoft Corp. is an America based international organization started by William Gates and Paul Allen in 1975. It specializes in software products with a few branches into hardware like the Xbox console. Its core products include computer software, hardware for computer, mobile, and gaming systems, as well as and cloud services.

Amazon Inc. is one of the biggest international tech establishments in America and the world. It started out in the garage of Jeff Bezos as an online marketplace for books back in 1994 but expanded to become the most valuable retailer in the US. Amazon.com’s products include media like books, DVDs, music CDs, videotapes, and software, baby products, consumer electronics, beauty products, groceries, kitchen items, jewelry, musical instruments, sporting goods, toys, and much more. In addition, Amazon offers a number of services like Amazon Prime, Amazon Video, Amazon Drive, Amazon Business, etc.

Netflix Inc. is a subscription-based media service provider. Reed Hastings and Marc Randolph founded it back in 1997. The firm aims at delivering current and old movie and tv-series content for streaming by their subscribers. As of January 2021, Netflix reached 203.7 million subscribers, including 73 million in the United States. The initial aim of Netflix was to serve as an online DVD-rental store. It capitalized a lot on the success of DVD and was the first to integrate the potential of the Internet and e-commerce to provide services and catalogs that bricks-and-mortar retailers could not compete with. Since 2012, it has also taken more of an active role as producer and distributor for both film and television series.

FANGMAN Stocks’ Performance in 2015 – 2019

When the FANGMAN stocks initially joined into one asset pool, they performed very well on the market, drawing eager investors. This sort of bullish behavior was in place from 2014 to 2018 and raised the mean price-to-earnings percentage of the FANGMAN securities to a staggering 69%

2018 was a negative turning point for the asset pool. FANGMAN stocks suffered terrible losses over that year, losing about 23% of their mean price-to-earnings percentage and falling by about 2.5% in price. Factors like the US-China trade war, Brexit, Facebook’s Cambridge-Analytica scandal, and the Huawei espionage scandal influenced a lot at that time.

Fortunately, 2019 saw a slow but steady recovery of the FANGMAN stocks. The FANGMAN companies cleared the hurdles of 2018, with stock prices rising by a mean of 1.7% when the US-China trade war was resolved. Though the mean price-to-earnings percentage remained at 43%, the companies involved all still managed to implement development and growth by using their revenue streams, which helped raise their net worth significantly.

Some of the FANGMAN stocks did better than others in 2019, finishing the year with bullish annual returns. In particular, these returns totaled 23.03% for Amazon, 28% for Google, 21% for Netflix. These were the lowest-value FANGMAN stocks in 2019. Facebook inc. with 56%, NVIDIA corp with 76%, Microsoft with 55%, and Apple with 86% finished on high notes.

FANGMAN Stocks During the Covid-19 Pandemic

The lockdown restrictions in most countries affected the stock ecosystem of 2020. Most businesses couldn’t cope and had to shut down, but all FANGMAN companies are focused on online services like streaming. With people stuck indoors and unable to connect in the real world, the online world quickly became a veritable booming marketplace.

On June 11, 2020, Facebook, Apple, Google, Microsoft, and Amazon lost about $270 billion in value, with Microsoft Corp. contributing almost $80 billion to that number. The value of their stocks dropped by 5%. Meanwhile, Facebook and Amazon came out as the “biggest winners” with a 3.4% dip.

As for Netflix and Nvidia, they have enjoyed considerable increases in their stock values. With the inability of people to move around, they have resorted to online video streaming and game services which Netflix and NVIDIA provide.

FANGMAN stocks made significant returns from 2020. Nvidia, with 129%, led the group, then Apple with 82%, Amazon with 76%, Netflix with 67%, Microsoft with 42%, Facebook with 33%, and Google with 30% followed.

FANGMAN Stocks In 2021

FANGMAN stocks have continued to rise in value since 2018, with more people subscribing to online services, buying internet-capable products, and exploring full use of the internet every day.

Experts continue to predict a bullish movement for tech stocks each month as FANGMAN stocks continued to climb to all-time highs in 2020. Developments in technology and intelligent business models support this climb.

Is there A FANGMAN Bubble?

The consistent rise of FANGMAN stocks has made financial experts wary that the tech industry bloom is merely a long-living bubble. The tech stocks have swallowed the financial market, with a combined market cap that matches Japan and the UK’s combined GDP.

Many experts warn that the various metrics of these stocks have peaked. Despite continuing momentum from the stocks, experts still draw parallels between the dot-com bubble of the early 2000s and the current growth of the tech industry as clear signs that its growth is a bubble.

However, several financial mavericks and companies, like Goldman Sachs (NYSE: GS) and Tom Dwyer, state that FANGMAN’s projected value will further rise, citing the topline growth, earning potential, and prospects of the tech stocks justify its increasingly high valuation. Therefore, there is obviously no FANGMAN bubble.

At the same time, most market analysts agree that that the most considerable risk to the FANGMAN stocks is regulatory policy and scrutiny. To curtail risk to everyday investors, governments and financial institutions shall place stricter restrictions on tech companies.

Conclusion

Tech-based companies will continually dominate the globe because technology is the way into the future. Despite the controversies that continually surround them and their establishments, FANGMAN has continued to play its part in society. Each one of them is giving back to the community in this time of need by donating sums to the government and providing relief items to feed America.

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FAQ

What does FANGMAN stand for?

FANGMAN is an acronym for the 7 most prominent names in the tech industry, Facebook, Apple, Nvidia, Google, Microsoft, Amazon, and Netflix.

How did the FANGMAN stocks behave during the Covid-19 pandemic?

All of FANGMAN stock ended bullishly, with huge percentage returns on annual trade. The FANGMAN companies provided invaluable services and valuable products to customers stuck indoors during the quarantine.

Can FANGMAN stocks determine market moves?

Yes, they can. FANGMAN stocks have raised the value of the S&P 500 index as well as the NASDAQ market they are listed on, bringing all the stocks on the index to trailing high values.

Are the FANGMAN stocks worth to invest in?

Some overly cautious investors warn against investing in the tech industry. However, most experts agree that FANGMAN is not expected to go down, and even if it does, it will only be for a recovery upwards.

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