Initially, it was simply FANG and not FAANG. It was during 2013. when Jim Cramer coined the term FANG stocks which is a collective term for the stocks of the world’s leading technology behemoths – Facebook, Amazon, Netflix, and Google. In 2017, Apple joined the bandwagon to be renamed FAANG.

Since, the outbreak of the pandemic that confined people to their homes, the dependence on OTT platforms, social media, and digitisation of businesses soared resulting in the rallying of these stocks thereby attracting several investors to buy shares of these tech companies.

What makes FAANG stocks popular in India? 

Indian investors in India want to build a portfolio that has investments in the foreign market. Investing in a different economy can be beneficial since every economy has its weaknesses and strengths and not all economies become weak at the same time. The stock market here presents a true picture of a nation’s economy. Most Indian investors spread their investments in foreign stock markets mainly in the US financial markets to diversify their portfolio and cushion the risks that might be associated with the Indian stock markets. 

The FAANG stocks are the stocks of such companies that are leading in technological advancements that have changed the definition of interacting, socializing, shopping and entertainment and own an expansive consumer base globally. Moreover, in the wake of the pandemic, the companies from FAANG have further revamped their products and offerings and with artificial intelligence, cloud, and machine learning to suit the needs of the new virtual workforce thereby pushing the demand and proving the investment in these stocks to be lucrative.