What is the FANG? You may have seen this acronym floating around over the past 6 months. It stands for Facebook, Amazon, Netflix, & Google. These 4 companies had a great 2015 for their shareholders. Each of them has a niche that they dominate and in 2015 they were all rewarded heavily for their positions. You probably own some of each of them if you have any sort of diversification in your investments.
Before Facebook all of the similar leaders of the pack had faded off to be replaced by the next big thing. Facebook has found a way to stay on top and that is why it has been such a good investment. Facebook is finding ways to monetize its popularity and combine business and personal lives. We will see if they are able to stay on top through 2016 or if another social media company will take its place.
Amazon actually showed a profit this year. That may seem odd to you if you haven’t watched their growth. They have been funded by investors and have taken the Walmart approach to growth. Be the lowest cost provider and continue to innovate. Amazon will be another exciting company to watch over the next decade. Will it hold onto being the go to spot for online purchases? Does Amazon have to make any money to conquer the world? We will see, with the release of Jet, it will be interesting to watch the battle.
Netflix’s story is similar. They have a niche as the online movie theater with their streaming movies and TV shows. I don’t think they have a strong a position as the other three, but we will see how they adapt as the world shifts in the next several years. They could end up like blockbuster.
Google has been a leader on the internet for a while. They are massive and willing to try anything. Up to this point they have been very open with partnerships and their growth has been driven by everyone’s desire to find information online. Going forward Google will need to stay on the leading edge of providing information and services to its consumers. They are one company I trust with information.
All together these 4 companies had an amazing 2015 so someone came up with the acronym FANG. There is nothing more sophisticated than that.
Disclosure: I personally own Facebook, Amazon, & Google stock. This is not intended to be investment advise. Please consult a financial professional before investing.