Unlike many other industries and assets on the stock market, tech stocks such as FAANG have been enjoying record highs this year. In fact, if anything, it appears that the coronavirus pandemic has actually been beneficial to some of these companies. Investors have been pouring cash into FAANG stocks, earnings of most of these companies have gone through the roof.
But with prices rising so rapidly, it inevitably begs the question: are FAANG stocks overvalued?
Apple stock, for example, reached an all-time high as it completely blew Wall Street’s expectations out of the water with its Q2 earnings report. Amazon stock is performing similarly, as out all FAANG companies, this was perhaps the most profitable last quarter.
So far, Netflix stock has risen over 52% since the beginning of the year, even though it had a minor drop around the end of July. Even Facebook stock has jumped despite the social media giant losing its popularity with investors. So far only Google stock seems to be lagging behind, if we compare it to the other FAANG companies. But it, too, has enjoyed huge gains this year.
Watch our full FAANG stock analysis and find out what FAANG stocks will be worth investing in over the next few weeks. And tell us below about whether you think the FAANG stocks bubble is indeed a bubble or the growing value is actually justified.
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