Investing always involves risk, and any veteran investor will tell you there are no “sure things” and no guarantee that the shares you initially purchased will skyrocket in value, but there are some stocks that, in hindsight, are frustratingly obvious and have achieved legendary status for their performance over the past decade.
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These are known as the “FAANG” stocks. For a more detailed explanation of these stocks and to find out how much you could have made by investing $5,000 10 years ago, read on.
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FAANG: Stocks with real appeal
When we talk about FAANG stocks, we are referring to the five most well-known and traditionally high-performing technology and social media companies. Here’s what the acronym originally meant: However, it’s become a bit outdated now.
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Facebook is now called Meta Platforms and its ticker symbol is META.
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Apple’s ticker symbol is AAPL and has remained unchanged since the company’s initial public offering on December 12, 1980.
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Amazon, with the ticker symbol AMZN, is another globally recognized brand.
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Netflix still uses its original ticker symbol, NFLX.
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Google’s parent company is now Alphabet Inc., but its ticker symbol remains GOOG.
FAANG stocks are often referenced due to their consistently strong market performance, commitment to continuous innovation, and massive market capitalization.
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10 years of technological development
In terms of how quickly technology has developed, 2014 seems like a much longer time ago than it was 10 years ago. The technology sector was still seen as one of the biggest growth opportunities and formed the basis of many forward-thinking financial strategies. But even the most astute analyst would have had a hard time predicting how big these technology companies would become and the financial performance that would make them the giants they are today.
Comparison of past and current FAANG prices
Below are the prices of the five FAANG stocks 10 years ago and now.
|
Stock code |
Estimated price as of June 2014 |
Closing price on June 13, 2024 |
|---|---|---|
|
META |
$67.22 |
$503.60 |
|
Amazon (AMZN) |
$16.24 |
$183.83 |
|
Apple (AAPL) |
$20.55 |
$214.24 |
|
Netflix (NFLX) |
$62.94 |
$653.26 |
|
Alphabet (GOOG) |
$28.69 |
$176.74 |
If you invest $5,000 equally in these five companies, $1,000 each, your $1,000 investment would look like this:
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With an initial investment of $1,000, you could have purchased nearly 15 shares of Facebook stock. Today, those 15 shares would be worth $7,554.
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By 2014, Amazon was well on its way to dominating the online retail industry, and a $1,000 investment could net you the equivalent of about 62 shares. Today, those 62 Amazon shares would be worth a cool $11,397. Not a bad return on investment.
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If you had invested $1,000 in 2014, you would have made nearly 49 shares. Today, those 49 shares would be worth just over $10,497.
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A $1,000 investment in Netflix in 2014 would have turned nearly 16 shares into a stock worth about $10,452 today.
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Finally, if you invested $1,000 in Google 10 years ago, you would get just 35 shares. Today, that share would be worth more than $6,185.
In total, that initial $5,000 investment in 2014 would be worth more than $46,000 today.
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This article originally appeared on GOBankingRates.com: How much money would you have today if you’d invested $5,000 in FAANG stocks 10 years ago?
