GAFAM Stocks

What Are GAFAM Stocks?

GAFAM is an abbreviation for five famous U.S. tech stocks: Google (Alphabet), Apple, Facebook (Meta), Amazon, and Microsoft.

GAFAM is very close to, however regardless not the same as, the more well known FAANG abbreviation which by and large demonstrates U.S. technology stocks: Facebook, Apple, Amazon, Netflix, and Google. In the last option, Netflix replaces Microsoft.

Figuring out GAFAM Stocks

While a ton of market indexes exist to all in all track the improvements of a sector, there are a modest bunch of companies that lead the pack in terms of sector influence. FAANG, GAFAM, and BATX are abbreviations for powerful companies that to a great extent affect their sectors, and the market as a whole.

GAFAM is comprised of Alphabet Inc.(GOOG), Apple Inc. (AAPL), Meta (META) (formerly Facebook), Amazon.com Inc. (AMZN), and Microsoft Corp. (MSFT). Each of the five companies are recorded on the NASDAQ stock exchange.

GAFAM Versus FAANG

Among the generally utilized FAANG group of companies, Netflix is the only one having a place with the "[consumer services](/client support)" sector and "consumer gadgets/video chains" sub-sector inferable from its media content business, while the other four have a place with the "technology" sector.

The term GAFAM was begat to replace Netflix with Microsoft in the rundown, making it a group of more technology-centered companies.

While Amazon is likewise classified under the "consumer services" sector and "index/specialty circulation" subsector, it likewise has its cloud hosting business and Amazon Web Services (AWS), which make it a critical supporter of the technology space.

Basically, GAFAM addresses the U.S's. technology leaders whose products range mobile and work area systems, facilitating services, online operations, and software products.

The five GAFAM companies have a joint market capitalization of around $4.5 trillion and are inside the best 10 companies in the US as per market capitalization as of March 31, 2020.

Among GAFAM stocks, the most seasoned company to list on the stock exchange is Apple which had its initial public offering (IPO) in 1980, trailed by Microsoft in 1986, Amazon in 1997, Google in 2004, and Facebook in 2012.

Model How GAFAM Is Used in reality

Alphabet, Apple, Meta, Amazon, and Microsoft are big players in the technology space.

That's what numerous investors trust on the off chance that these stocks are getting along nicely, the whole sector probably is also. As it were, these stocks act like an index for the technology sector.

Heading into mid 2020, the Nasdaq 100 index was rising. GAFAM stocks were likewise rising. Meta was the first to break lower, cresting in late January 2020. The other GAFAM stocks and the Nasdaq 100 kept on progressing.

Apple put in its top on Feb. 12, Microsoft on Feb. 10. The Nasdaq put in its top on February 19. Hence, when the Nasdaq crested, three of the five GAFAM stocks were at that point heading lower. Alphabet and Amazon crested around the same time as the Nasdaq (closing price basis).

Monitoring the GAFAM stocks might have alarmed investors that the technology sector was debilitating, even however the Nasdaq 100 was all the while rising. All things considered, GAFAM stocks are not generally a dependable indicator of what the sector will do.

Features

GAFAM is an abbreviation for the stocks of American technology companies: Google (Alphabet); Apple; Facebook (Meta); Amazon; and Microsoft.
GAFAM is to some degree more centered around technology stocks than FAANG, since Netflix is viewed as a consumer services and media company.
FAANG stocks incorporate a lot of similar stocks, yet replaces Microsoft with Netflix.