Is the FAANG stock boom ending ?

The FAANG stocks

sometimes called

FANG + Apple

or just FANG+

consist of: 

Facebook, 

Apple, 

Amazon, 

Netflix, 

and Alphabet 

(Google). 

When companies 

are growing quickly, 

investors tend to

look backwards, 

and falsely assume 

very high rates 

of future growth, 

for already mature 

companies. 

  Here's one example:

Apple’s revenue growth rate 

has slowed to an average rate 

of less than 4% annually 

over the past three years.

As companies 

become dominant 

in mature sectors, 

their growth rates

slow a lot.

Presently, 

Apple is valued 

at 5.1% of GDP, 

Amazon at 4.8%, 

Alphabet at 4.6%, 

Facebook at 3.3%, and

Netflix at 0.8% of GDP. 

That’s a total FAANG

market capitalization 

of nearly 20% of GDP 

for only 5 stocks ! 

Historically, the norm 

for market capitalization to GDP, 

was about 60% for all stocks !!

(excluding financial companies)

In the past few weeks:

Netflix (NFLX) is down 10% 

after issuing disappointing 

subscriber growth and Q3 guidance

Facebook (FB) is down 20% 

after  delivering lower user 

and revenue numbers 

than the Street was expecting

Amazon (AMZN) is flat 

despite posting blowout Q2 EPS,

offset by a revenue miss

Google/Alphabet (GOOGL) 

only managed a modest 3% rise 

after reporting earnings & revenue 

beats that were tempered 

by rising costs and 

a record $5 billion 

EU anti-trust fine