Category: FANGAM Stocks

Back to Earth or Temporary Setback? Revisiting the FANGAM Stocks



It has been a rocky year so far, in 2022, with worries about inflation competing with hopes about recovery for the market's attention. In the midst of all the action, to no one's surprise, have been six stocks (Facebook, Amazon, Netflix, Google, Apple and Microsoft or FANGAM) that have largely driven US equities for the last decade, roiling the market with their most recent earnings reports. Netflix and Facebook saw drops of 20% or more in market capitalization, following negative earnings reports, but Amazon and Google beat market expectations. In this post, I will be valuing each of these companies, both to assess whether to invest in them individually, and to examine whether there are lessons for the market in their price entrails. 

My September 2020 Valuations

If you tally the winners and losers in the stock market sweepstakes between 2010 and 2019, it is undeniable that the decade belonged to the FANGAM stocks, as can be seen in the graph, where I chart the collective market cap of these six companies against the collective market cap of all US equities, and report on their percentage share:


Over the course of the decade (2010-2019), the FANGAM stocks increased in collective market capitalization from $719 billion from $5.07 trillion, and their share of the overall equity value of all US stocks also surged from 6.5% to 14.9%. It is not hyperbole that without these stocks, the last decade would not have been a great one for US equities. Coming into 2020 (Read more...)

Back to Earth or Temporary Setback? Revisiting the FANGAM Stocks



It has been a rocky year so far, in 2022, with worries about inflation competing with hopes about recovery for the market's attention. In the midst of all the action, to no one's surprise, have been six stocks (Facebook, Amazon, Netflix, Google, Apple and Microsoft or FANGAM) that have largely driven US equities for the last decade, roiling the market with their most recent earnings reports. Netflix and Facebook saw drops of 20% or more in market capitalization, following negative earnings reports, but Amazon and Google beat market expectations. In this post, I will be valuing each of these companies, both to assess whether to invest in them individually, and to examine whether there are lessons for the market in their price entrails. 

My September 2020 Valuations

If you tally the winners and losers in the stock market sweepstakes between 2010 and 2019, it is undeniable that the decade belonged to the FANGAM stocks, as can be seen in the graph, where I chart the collective market cap of these six companies against the collective market cap of all US equities, and report on their percentage share:


Over the course of the decade (2010-2019), the FANGAM stocks increased in collective market capitalization from $719 billion from $5.07 trillion, and their share of the overall equity value of all US stocks also surged from 6.5% to 14.9%. It is not hyperbole that without these stocks, the last decade would not have been a great one for US equities. Coming into 2020 (Read more...)