Often when you talk about stock markets and global markets, MAANG (previously known as FAANG) comes up in the conversation. But what really is MAANG stock and why is it always one of the top topics to discuss? Let’s find out in this article where we explain the definition of MAANG stocks, companies under MAANG, how to invest in MAANG companies and why is it so important in the global economy.
What are MAANG Companes?
MAANG companies is an acronym provided to the biggest tech giant companies, i.e. Meta, Amazon, Apple, Netflix, and Google (Alphabet). It was coined by Jim Cramer in the popular CNBC show Mad Money as FANG, which included Facebook, Amazon, Netflix, and Google at the time. Apple was added to the list to make it FAANG in 2017. Since Facebook shifted to the name Meta, the term has become MAANG.
What are MAANG Stocks?
MAANG stocks are the stocks of tech giant companies that trade on the S&P 500 Index on the US Stock exchanges. MAANG stocks refer to the stocks of Meta, Amazon, Apple, Netflix and Google. These stocks form over 19-20% of the index value and are often the precursor to the index performance.
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Understanding MAANG Stocks
MAANG companies apart from being widely known across the globe are also among the largest companies with market capitalization of approximately $7 trillion. Their stature and growth curve in the stock market have seen major investors park their funds into them including Berkshire Hathaway (BRK), Soros Fund Management, Renaissance Technologies, and more.
MAANG stocks are traded on the Nasdaq exchange and are included in the S&P 500 Index. The overall S&P 500 Index market capitalization stands at $36 trillion whereby MAANG alone accounts for over 19% of the value. Since the S&P Index is often a marker of the US economy as a whole, these MAANG stocks play a major role in showcasing the market trend.
List of MAANG Stocks and Companies in 2023
- Meta Platforms (META)
- Meta, formerly known as Facebook is the popular social media platform known globally. The company is headquartered in California, USA. Meta owns two of the most popularly used social media platforms in the world, Facebook and Instagram alongside two of the largest messaging platforms, WhatsApp and Messenger. They have a market capitalization of $778 billion and have provided a 13.8% average. annualized return for a 5-year period.
- Amazon (AMZN)
- The journey of Amazon is quite surreal, having started as a book-selling platform into one of the largest tech companies in the world. The company is the largest online retailer and also runs a famous cloud service, AWS. They also have digital streaming services and other areas of work. The company has a market capitalization of $ 1.29 trillion and offers a return of 5.6% avg. annualized return for a 5-year period.
- Apple (AAPL)
- Apple is the largest smartphone manufacturer in the world and is widely known for its iPhones, iPads, Macbooks, and more. They are a premier hardware and software company who have made their name with the top-notch offering. Apple made its way into the MAANG list in 2017 and has been a mainstay. The company has a worldwide reach and its products are one of the most coveted ones. The market capitalization of Apple is $2.72 trillion making them the company with the highest market cap globally. They have offered a return of 24.5% avg. annualized return for a 5-year period.
- Netflix (NFLX)
- Netflix is a subscription-based streaming service provider that revolutionized the streaming world. Having started as a mere DVD rental company, they have transformed into the largest streaming service in the world and have reached 190 countries across 30+ languages. The company has over 238.9 million subscribers across the world. The market capitalization of Netflix is $164 billion and has given a 0.35 avg. annualized return over the 5-year period.
- Google (GOOGL)
- Google, officially known as Alphabet started as a search engine company in 1998. It over the years has diversified into multiple spaces and is one of the top technology conglomerates in the world. They are one of the most widely known companies in the world due to their foray into various areas like internet access, YouTube, AI, robotics, and more. Google has a market capitalization of $1.72 trillion and has offered an 18.2% av. annualized return for a 5-year period.
Why are MAANG Companies so famous?
MAANG companies, i.e. Meta, Amazon, Apple, Netflix, and Google are well-known brands across the globe. They have had a remarkable growth curve over the years and have become a flagbearer for tech companies over the period. Looking at an investment perspective, the returns and the historical track show stellar performance from these companies with clear stability making a lot of people interested in investing in these companies.
Is Investing in MAANG companies a good idea?
As aforementioned, MAANG companies are technological behemoths who for years have performed with stellar growth in the market. Their market share and its constituent in the S&P 500 Index already showcase their profile. moreover, these stocks have outperformed the S&P returns over the years giving good returns. MAANG companies are influential in the market and look well-positioned to be at the forefront for long.
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Are MAANG Stocks overvalued?
Overseeing the growth spurt in the last decade of the MAANG companies, makes people wonder if these stocks are overvalued. However, at the same time, their fundamental strength in the business vertical and their penchant for impressive performance over time have shown that these stocks are likely to offer good returns to their investors. The debacle of timing the market with these MAANG stocks is always on and will be. Ultimately it comes down to making informed decisions on investing in these companies to be able to generate returns.
How to invest in MAANG Companies from India?
Investors living in India or NRIs, can invest in MAANG companies via different international mutual fund schemes available for investors. NRIs can easily invest in MAANG stocks with the right international fund via lumpsum or systematic investment plan (SIP) as per their suitability to generate returns and build wealth in the long run.
Invest in MAANG Companies as NRI
NRIs can now download the SBNRI App and choose to invest in international mutual funds for the NRIs schemes in India with ease. You can also get detailed investment advice from experts at SBNRI. Also, visit our blog and YouTube channel for more details.
SBNRI is an authorized Mutual Fund Distributor platform & registered with the Association of Mutual Funds in India (AMFI). ARN No. 246671. NRIs willing to invest in mutual funds in India can download the SBNRI App to choose from 2,000+ mutual fund schemes or can connect with the SBNRI wealth team to better understand Mutual Fund investments.
FAQs
What is the full form of MAANG?
- MAANG stands for Meta, Amazon, Apple, Netflix, and Google, the big tech giants of the world.
Where is MAANG companies listed?
- MAANG companies are listed on the S&P 500 Index and are traded on the NASDAQ exchange.
Is Microsoft part of MAANG?
- No, Microsoft is not part of the MAANG stocks as MAANG stocks were coined to describe new tech companies delivering high growth potential during 2010 and Microsoft was already a mature and older company known to many by then.
What are MAMATA stocks?
- MAMATA stock is an acronym for Microsoft, Apple, Meta, Amazon, Tesla, and Alphabet. The term came to fame after the rebranding of Facebook into Meta.
Who coined the word FAANG and when?
- It was coined by Jim Cramer in 2013 in the popular CNBC show Mad Money as FANG, which included Facebook, Amazon, Netflix, and Google at the time. The acronym was changed to FAANG after the inclusion of Apple in 2017 and later on, changed to MAANG after Facebook’s rebranding to Meta.
What does MAMAA stand for?
- MAMAA is an acronym for five of the largest and most popular tech-centric U.S. stocks that include Microsoft instead of Netflix and reflects re-brandings of FAANG members Facebook and Google. MAMAA stocks include Meta, Amazon, Apple, Microsoft, and Alphabet (formerly Google).
What is International Mutual Funds?
- International mutual funds are an investment vehicle that allows investors to invest in equity, debt, and other instruments outside India.
How can NRI invest in International Mutual Funds?
- An NRI can invest in International Mutual Funds using his/her NRE/NRO Account after getting their Mutual Fund KYC done. The NRE Account is used to invest on a repatriable basis and the NRO Account is used to invest on a non-repatriable basis.
Are international mutual funds good investments?
- It depends on your investment goals and risk tolerance. Investment in international mutual funds could offer higher returns, but investment in such kinds of funds involves higher risk.
Why should an NRI invest in an International Mutual Fund?
- Investing in international funds allows NRI investors to take advantage of the gains from global stock market performance. This can be a good alternative for investors looking to diversify their portfolios and add varied investment instruments to their portfolios.
