In the past few days, the three major stock market indices (Dow Jones Industrial Average, S&P 500, and Nasdaq) in the US closed at record highs. If you own any of the 'FAANG' stocks, then you may have made a very smart purchase. 'FAANG' stocks are Facebook, Apple, Amazon, Netflix, and Google. CNBC reporter (and Thestreet.com founder), Jim Cramer; may have coined this acronym back in 2014. Today, Facebook (FB) and the other four tech. companies are some of the most valued companies in the world. Apple has a market cap. of $891 billion; Facebook has a market cap. of $520 billion; Amazon has a market cap. of $536 billion; Google's market cap. is $723 billion; and Netflix is at $87 billion market cap. The DJIA has increased by almost 20% in the past 10 months, while the Nasdaq has increased by 26% in 2017 YTD. Finally, the S&P 500 index has increased 16% in 2017 YTD. Yet, there is one company that should be added into the mix. It is Microsoft, and the tech. giant has a market cap. of $649 billion. Then, the acronym changes from 'FAANG' to 'FANMAG.' These six companies are high performing ones, and they are tech. long term values. Most investors and hedge fund managers would advise the stockholders of these companies to hold onto these six corporations, in order to gain a long term profit. All six of these companies have been innovators in different industries, in the past three decades. Amazon has been a leader in e-commerce for the past two decades, and the company is looking for a new city/state to build their second headquarters (HQ2). Apple released their Iphone X product yesterday, and the phone is the most expensive smartphone at $1000 for a consumer to purchase. Facebook has been a leader in social media for the past decade, or a shorter time frame. The company has gained major traction in advertising and journalism, as more than 40% of generation X and Y read the news on Facebook. Google has been the #1 search engine; a leading web advertising company; and their Google Pixel 2 smartphone is a viable option for the non Iphone (or non Samsung galaxy) person/community. Microsoft continues to be a leader in the software industry, plus dabbling in the video game world and other areas. Netflix leads the streaming video market, for the past eleven years according to many Goldman Sachs (and other huge investment banking) financial advisers. Finally, there are competitive companies that give the 'FANMAG' stocks a bigger reason to innovate. For example, Hulu continues to be a viable competitor to Netflix thanks to their new subscription based plan services introduced in 2015 and 2016. Samsung reported record 3rd quarter profits five days ago. The South Korean electronics juggernaut continues to make major headway with their Galaxy S8; S8 Plus; and Note 8 smartphones. Goldman Sachs and other leading investment banking firms think that most investors will buy more of the 'FANMAG' stocks in years to come. Good luck to you, if you are a 'FANMAG' stock owner. Enjoy the image above, and arrivederci from G. Ripley.
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