FAANG: The Intersection of Growth and Value

In 2021, the Prophits Team worked to make the dataset including more stocks and styles of investing. Mainly going from a very value based list to including more growth stocks and funds. In this pursuit, there were some interesting results.

When FAANG (Facebook, Apple, Amazon, Netflix, and Google) stocks were entered there would be a mix of value and growth stocks that were returned. This is a product of how universally popular FAANG stocks are between almost all disciplines of investors. Also, the Prophits AI algorithm’s true worth is shown by how it can cross investing styles, company sizes, and more to find the best ideas based on investor behavior not only structural things like sectors and market caps.

For example, when Facebook ($FB) is entered it returns:

Growth:

Square ($SQ)

Unity Software ($U)

Value:

American Express ($AXP)

CVS Health ($CVS)

For Amazon ($AMZN) it returns:

Growth:

Applied Materials ($AMAT)

MongoDB ($MDB)

Value:

Capital One Financial ($COF)

Nike ($NKE)

For Netflix ($NFLX) it returns:

Growth:

Tesla ($TSLA)

CrowdStrike ($CRWD)

Value:

International Exchange ($ICE)

Union Pacific ($UNP)

For Google ($GOOG) it returns:

Growth:

Biogen ($BIIB)

Square ($SQ)

Value:

CarMax ($KMX)

Copart ($CPRT)

You may have noticed that Apple ($AAPL) was not mentioned. This is because it returns exclusively value, making it an outlier. However, besides Apple, all of the other FAANG companies return a mix of both value and growth stocks.

I also brought this study a little further and tested Alibaba ($BABA) which returned:

Growth:

Taiwan Semiconductor ($TSM)

Sea ($SE)

Value:

Moody’s ($MCO)

Visa ($V)

The same phenomenon occurred. This seems to be a product of these companies’ mass popularity across a range of investors and demonstrates how the Prophits algorithm crosses styles of investing to find its ideas.

value-based