FAANG+ Stocks are Losing Their Shine

The acronym FAANG was used to refer to five of the most well-known and successful technology companies in the world: Facebook, Amazon, Apple, Netflix, and Google (now Alphabet). But with a wave of excitement about new innovations and technology a new name for the tech behemoths has emerged – the FAANG+.

The equally weighted basket of ten tech stocks: Meta Platforms, Apple, Amazon, Netflix, Microsoft, Alphabet, Class A, Tesla, Nvidia, Salesforce.com, and Advanced Micro Devices is broadly described as FAANG+.

The FAANG+ aims to track the Solactive FAANG+ Index, minus fees, and expenses. It intends to track the price movements of a portfolio of the above mentioned ten stocks, which includes seven core stocks plus three additional stocks representing the next largest, most liquid, tech-enabled stocks listed in the U.S., which is updated annually.

These ten stocks are generally the most successful and influential technology companies in the world. They are known for their strong financial performance and their ability to continuously grow their business at a steady rate. The companies are well known and have come to dominate the tech industry over the past decade, with their products and services being used by billions of people worldwide.

The FAANG+ stocks have had a significant impact on the tech industry and the world at large. They have transformed the way people communicate, shop, consume entertainment, and access information. The companies are also known for their high levels of innovation, with each one pushing the boundaries of what is possible in their respective fields.

A great way to get exposure to the technology industry as a whole is by investing in FAANG+, as buying individual stocks could deprive investors from sufficient diversification and exposes them to the individual company performance.

One way to invest in FAANG+ stocks is through the newly launched Leverage Shares FAANG+ ETP that holds these ten stocks in equal weights. Another way to gain exposure to FAANG+ is to use exchange-traded fund (ETF) that tracks the performance of these companies. For instance, Leverage Shares US Tech 100 ETP tracks the Invesco QQQ ETF, which is based on the Nasdaq-100 Index®. The Fund under most circumstances, consist of all of stocks in the index based on market capitalization, meaning that investors gain reasonably good exposure to the FAANG+ stocks.

Source: TradingView

The FAANG+ stocks have outperformed significantly in 2023 and have enjoyed a stunning rally on expected growth in artificial intelligence, with some of the constituents such as Nvidia nearly tripling in value year-to-date.

The FAANG+ stocks are trading lower in August after a spate of strong economic data caused investors to dial back expectations of rate cuts and increased the prospects of another rate hike by the end of the year, which drove up government bond yields.

FAANG+ has lost some of its shine this month as investors are concerned with the massive earnings expectations from these companies, their current valuations, and the red flags waving for tech stocks as the artificial intelligence (AI) hype fades.

At present there is disagreement between investors whether the FAANG+ stocks are overvalued. Their proponents argue that their valuations are justified based on their fundamental strength as businesses and the current dip presents a good buying opportunity. On the other hand, sceptics argue that, even with impressive business performance, the FAANG+ stocks’ prices have become so expensive that it may be difficult to realize attractive long-term profits from investing in them.

The Leveraged Shares FAANG+ ETP offer investors the ability to strategically harness market exposure to the basket of ten market leaders.

Websim is the retail division of Intermonte, the primary intermediary of the Italian stock exchange for institutional investors. Leverage Shares often features in its speculative analysis based on macros/fundamentals. However, the information is published in Italian. To provide better information for our non-Italian investors, we bring to you a quick translation of the analysis they present to Italian retail investors. To ensure rapid delivery, text in the charts will not be translated. The views expressed here are of Websim. Leverage Shares in no way endorses these views. If you are unsure about the suitability of an investment, please seek financial advice. View the original at

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