The FAANG stocks, which include Meta Platforms (NASDAQ: NASDAQ:META), Alphabet (NASDAQ:GOOGL) (NASDAQ: GOOG) (NASDAQ: GOOGL), Apple (NASDAQ: NASDAQ:AAPL), Amazon (NASDAQ: NASDAQ:AMZN), and Netflix (NASDAQ: NASDAQ:NFLX), have demonstrated significant growth in 2023. Among them, Meta Platforms, formerly known as Facebook, has been the standout performer with its shares soaring more than 155%. This substantial increase is largely attributed to strong quarterly updates.
Despite potential distortions in earnings, Meta is projected to maintain its growth trajectory. The company's lower price/earnings-to-growth (PEG) ratio, a metric that takes into account future growth estimates, signals a promising future. The tech giant is expected to bolster its growth by monetizing high-growth areas such as Reels and AI-powered business messaging.
Meanwhile, other FAANG stocks are also set for continued growth. Increased adoption of artificial intelligence (AI) is anticipated to favor Amazon and Alphabet as organizations increasingly utilize their cloud platforms. Apple's investment in generative AI and potential profits from the self-driving car market could further enhance its performance.
Netflix, on the other hand, is banking on its ad-supported streaming model and gaming for future growth. While all FAANG stocks have performed impressively this year, with Apple recording nearly a 40% increase in year-to-date returns despite being the least performer among them, Meta seems poised to lead in the next decade. However, it's clear that other FAANG stocks also hold strong potential for sustained growth.
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