FAANG Stocks Impact Market Growth
As of late June 2023, FAANG stocks—Facebook (Meta), Amazon, Apple, Netflix, and Google (Alphabet)—have driven significant gains in the stock market, reaching record highs. Meta Platforms and Amazon have emerged as historically attractive investments, with cash flow multiples of 8.46 and 10.06 respectively, signaling strong potential for growth derived from their investment in AI technologies.
Meanwhile, Apple is viewed as a “pretender,” trading at a high cash flow multiple of 25.34, despite stagnant hardware sales over the previous three years. Over $853 billion has been spent on share buybacks since 2013, which has benefitted shareholders but masked underlying growth issues.
The rankings, based on Wall Street’s consensus cash-flow-per-share estimates for 2027, are as follows: Meta Platforms (8.46), Amazon (10.06), Alphabet (16.78), Netflix (18.61), and Apple (25.34).
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