FAANG is an acronym used to describe five popular US companies in the tech sector - Meta Platforms (formerly known as Facebook (FB), Amazon.com (AMZN), Apple (AAPL), Netflix (NFLX), and Alphabet (Google’s parent company) (GOOGL). These companies are very popular with investors and have seen impressive returns in recent years.
However, the current market correction, coupled with Fed policy tightening, has hit tech stocks hard, as is evidenced by the Technology Select Sector SPDR ETF’s (XLK) 19.46% loss since the beginning of 2022 versus the SPDR S&P 500 ETF’s (SPY) 13.76% loss over the same period. However, challenging times like these allows investors to scoop up shares of prominent companies at a considerable discount.
