US Stocks

“Tech Titans: How Technology Stocks are Fueling the US Stock Market” – Poonit Rathore

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Everything you need to know about the top-performing US Tech Stocks – the FAANG – Facebook (META), Amazon, Apple, Netflix, and Google (Alphabet)

"Tech Titans: How Technology Stocks are Fueling the US Stock Market"-Poonit Rathore
“Tech Titans: How Technology Stocks are Fueling the US Stock Market”-Poonit Rathore

Have you heard of FAANG? Technology companies such as Facebook, Amazon, Apple, Netflix, and Google specialize in the production and management of technology-related products and services. These companies are involved in businesses such as manufacturing hardware and software, running e-commerce services, creating robotics applications, digital electronics, etc. Shares of many large and small technology companies are listed on American stock exchanges such as the NASDAQ and the New York Stock Exchange. Exchange (NYSE).

The movements of the US stock market exchanges largely depend on technology stocks. Stock exchanges have a lot of exposure to many tech companies, including older tech giants like Apple and Microsoft and relatively new ones like Netflix and Alphabet Inc (Google’s parent company).

NASDAQ 100 and Tech Stocks – A Close Relationship

The NASDAQ 100 Index comprises the top 100 US non-financial companies. In 2020, the top 6 technology companies—Apple, Alphabet, Meta, Microsoft, Amazon, and Tesla—owned more than half the value of the NASDAQ100. You can conclude that the stock price movements of these tech giants majorly influence the movement of the NASDAQ100 index.

FAANG – The Five Top-Performing US Technology Stocks

In stock market parlance, investors and traders use a popular term called ‘FAANG’. It stands for five technology giants with a combined market capitalization of over $7 trillion. FAANG is Facebook (META), Amazon, Apple, Netflix, and Google (Alphabet). Let us know some interesting facts about each of them-

Facebook (now META) (NASDAQ: META)-

Facebook was launched in 2004 as a social media company. It has also bought other popular social media companies-Instagram and WhatsApp.
It has now been rechristened as ‘Meta’, representative of its business expansion into the 3D version of the Internet.
It was listed in 2012 at $38 per share. In September 2021, Meta’s share price reached above $350.
Currently, Meta has a market capitalization of over $300 billion. ( source )

Amazon (NASDAQ: AMZN) –

It was founded by Jeff Bezos in 1994 and initially started as an online bookstore. Today, it is the largest online marketplace with all kinds of sellers and buyers on its platform.
Amazon’s stock was listed on the NASDAQ in 1994 at a share price of $18 per share.
Its share price reached an all-time high of $186 in 2021.
Today its market capitalization is more than $848 billion. ( source )

Apple (NASDAQ: AAPL) –

It was founded in 1976 by Steve Jobs and Steve Wozniak as a computer manufacturing company.
Today, it is one of the most popular technology companies selling mobile phones, laptops, computers, tablets, and other electronic goods.
Apple’s stock was listed at $22 per share in 1980 and has split several times since then to attract more retail investors.
Apple was the first company to touch a record market capitalization of $1 trillion, $2 trillion and even $3 trillion.

Netflix (NASDAQ: NFLX)-

It was founded in 1997 by Reed Hastings and Mark Randolph then as a doorstep delivery service of DVDs. Customers could order DVDs on their website and Netflix would mail them to them.
Today, it is one of the top online entertainment streaming companies with a huge library of movies and TV shows and more than 200 million subscribers.
Netflix’s stock was listed at $15 per share in 2002 and its share price is expected to touch an all-time high of over $600 in 2021.
Currently, Netflix has a market capitalization of $123 billion. ( source )

Google (now Alphabet Inc.) (NASDAQ – GOOGL) –

It was founded in 1998 by Larry Page and Sergey Brin.
Google was invented as a search engine to organize all web pages on a single platform and is accessible to all web users.
It has acquired 232 companies over the years and in 2015, Google changed its name to Alphabet to bring its other businesses under one name.
Google is the largest search engine in the world. It has partnered with other applications such as YouTube, Google Cloud, and Android under Alphabet Inc.
Google’s stock was listed at $85 per share in 2004. Since then, the stock has split three times, most recently in 2022.
Currently, it has a market capitalization of $1.1 trillion. ( source )

In Short :

Technology stocks, also known as tech stocks, have played a significant role in driving the growth of the US stock market in recent years. Some of the most notable technology companies that have had a significant impact on the market include:

  • Apple: One of the largest and most valuable companies in the world, Apple’s stock has been a consistent performer in the market. The company’s success is driven by its strong brand and diverse product portfolio, which includes iPhones, iPads, and Mac computers.
  • Amazon: This e-commerce giant has revolutionized the retail industry and has become one of the most valuable companies in the world. Its stock has performed well as more consumers turn to online shopping.
  • Facebook: The social media giant has a massive user base and generates significant revenue through advertising. Its stock has performed well in recent years as the company continues to dominate the social media space.
  • Google (Alphabet): The search giant has a dominant market share in the search engine market and generates significant revenue through advertising. Its stock has also performed well in recent years as the company expands into new markets like self-driving cars and smart home devices.
  • Microsoft: The software giant has a diverse product portfolio that includes Windows, Office, and the Xbox gaming console. Its stock has performed well in recent years as the company shifts towards a cloud-based business model.

These companies, and many more technology stocks, continue to drive the growth and innovation of the US stock market.


Disclaimer: This article has been written for educational purposes only. The securities quoted are examples only and not recommendations.

Poonit Rathore

My name is Poonit Rathore. I am a Blogger, Content-writer, and Freelancer. Currently, I am pursuing my CMA final from ICAI. I live in India.

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