In this article, we discuss the 5 best FAANG stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to the 10 Best FAANG Stocks to Buy Now.
5. Apple Inc. (NASDAQ: AAPL)
Number of Hedge Fund Holders: 127
Apple Inc. (NASDAQ: AAPL) ranks 5th on the list of the 10 best FAANG stocks to buy now. The California-based tech company manufactures iPhones, iPads, iMacs, and wearables. The company also offers subscription-based music, video, and game streaming services.
Ananda Baruah of Loop Capital maintained a Buy rating on Apple Inc. (NASDAQ: AAPL) on July 29 and increased the firm’s price target to $165 per share from $150, citing Apple’s iPhone products a key driver for the second half of the year. Shares of Apple Inc. (NASDAQ: AAPL) climbed 11% in the past three months.
The company has a market cap of $2.4 trillion. In the third quarter of 2021, Apple Inc. (NASDAQ: AAPL) recorded an EPS of $1.30, beating estimates by $0.29. The company’s third-quarter revenue was $81.43 billion, increasing 36% year over year, beating revenue estimates by $8.09 billion. The stock has gained 37% in the past twelve months.
By the end of the first quarter of 2021, 127 hedge funds out of the 866 tracked by Insider Monkey held stakes in Apple Inc. (NASDAQ: AAPL), worth roughly $130.9 billion.
In its Q1 2021 investor letter, Distillate Capital, an asset management firm, highlighted a few stocks, and Apple Inc. (NASDAQ: AAPL) was one of them. Here is what the fund said:
“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ’20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”
4. Alphabet Inc. (NASDAQ: GOOGL)
Number of Hedge Fund Holders: 185
Alphabet Inc. (NASDAQ: GOOGL) ranks 4th on the list of the 10 best FAANG stocks to buy now. The California-based tech giant is Google’s parent company. Alphabet Inc. (NASDAQ: GOOGL) provides online advertising and cloud computing services. The company also operates Google Services, which comprises YouTube, Google Maps, Google Play, Chrome, and Search.
On July 29, Argus Research maintained a Buy rating on Alphabet Inc. (NASDAQ: GOOGL) and increased the firm’s price target to $3,100 per share from the previous $2,800, noting Alphabet Inc.’s strong Q2 results.
Alphabet Inc. (NASDAQ: GOOGL) is among the biggest tech companies that benefit from the continuous demand for cloud computing services due to remote and hybrid work setup. Google Cloud’s revenue in the second quarter grew 54% year over year to $4.63 billion, exceeding analyst consensus of $4.40 billion. Alphabet Inc. (NASDAQ: GOOGL) stock has gained 54% year to date.
The company has a market cap of $1.8 trillion. In the second quarter of 2021, Alphabet Inc. (NASDAQ: GOOGL) reported an EPS of $27.26, exceeding estimates of $19.34. In its second-quarter report, the California-based tech giant recorded a 62% growth in revenue year over year to $61.9 billion, exceeding analyst expectations of $56.16 billion.
By the end of the first quarter of 2021, 185 hedge funds out of the 866 tracked by Insider Monkey held stakes in Alphabet Inc. (NASDAQ: GOOGL), worth roughly $24.6 billion. This is compared to 179 hedge funds in the previous quarter, with stakes worth approximately $21.9 billion.
In its Q2 2021 investor letter, Ensemble Capital mentioned Alphabet Inc. (NASDAQ: GOOG) and discussed its stance on the firm. Here is what the fund said:
“Google: While Google’s stock was up 31% in 2020, handily beating the S&P 500, it was one of the weaker performing Big Five tech giants. With the company posting blow-out reports in the most recent quarters, the stock has soared 40% this year, making it the best performing of the Big Five this year. In the most recent quarter, the stock rallied 18% in the wake of the company reporting its largest beat of estimated earnings before interest and taxes in over a decade. Amazingly, the company is now reporting revenue more than 50% above the level it was generating two years ago, even though travel-related advertising, which is one of Google’s largest advertising categories, has not yet rebounded.”
3. Amazon.com, Inc. (NASDAQ: AMZN)
Number of Hedge Fund Holders: 243
Amazon.com, Inc. (NASDAQ: AMZN) ranks 3rd on the list of the 10 best FAANG stocks to buy now. The Seattle-based tech company provides an e-commerce platform, cloud computing services through Amazon Web Services, and video streaming services.
On July 30, Stifel analyst Scott Devitt maintained a Buy rating on Amazon.com, Inc. (NASDAQ: AMZN) with a price target of $4,400 per share. Despite missing revenue estimates in Q2, Scott Devitt advises investors to buy the dip, noting that the setup is enticing now that the stakes are “on the other side of the COVID comp reset.”
The company has a market cap of $1.7 trillion. In the second quarter of 2021, Amazon.com, Inc. (NASDAQ: AMZN) reported an EPS of $15.12, beating estimates by $2.83. The company’s revenue in the second quarter grew 27% year over year to $113.08 billion, missing revenue estimates by $2.01 billion. Shares of Amazon.com, Inc. (NASDAQ: AMZN) increased 5% in the last twelve months.
By the end of the first quarter of 2021, 243 hedge funds followed by Insider Monkey held stakes in Amazon.com, Inc. (NASDAQ: AMZN) with a total value of $50.4 billion.
2. Microsoft Corporation (NASDAQ: MSFT)
Number of Hedge Fund Holders: 251
Microsoft Corporation (NASDAQ: MSFT) ranks 2nd on our list of the 10 best FAANG stocks to buy now. The Washington-based tech company sells devices, software, cloud computing service through Azure and business solutions.
On July 28, JPMorgan analyst Mark Murphy maintained an Overweight rating on Microsoft Corporation (NASDAQ: MSFT) and increased the firm’s price target to $310 per share from the previous $300, highlighting the tech company’s exceptional recent quarter result.
According to recent reports, Microsoft Corporation (NASDAQ: MSFT) is in active discussions to invest in Indian budget hotel chain Oyo at a $9 billion valuation ahead of its intended IPO. Meanwhile, in the last week of July, Microsoft Corporation (NASDAQ: MSFT) announced the acquisition of Suplari, an AI-powered analytics firm, to boost the tech corporation’s financial data analysis and management. The shares of Microsoft Corporation (NASDAQ: MSFT) jumped 3% in the last month.
The company has a market cap of $2.14 trillion. In the fourth quarter of the fiscal year 2021, Microsoft Corporation (NASDAQ: MSFT) reported an EPS of $2.17, beating estimates by $0.25. The company’s fourth-quarter revenue came in at $46.2 billion, increasing 21% year over year and beating revenue estimates by $1.85 billion. The stock has gained 13% in the past three months.
By the end of the first quarter of 2021, 251 hedge funds followed by Insider Monkey held stakes in Microsoft Corporation (NASDAQ: MSFT) with a total value of $58.9 billion, down from 258 hedge funds $52.8 billion, respectively, a quarter earlier.
1. Facebook, Inc. (NASDAQ: FB)
Number of Hedge Fund Holders: 257
Topping the 10 best FAANG stocks to buy now is Facebook, Inc. (NASDAQ: FB). The California-based company is the largest social networking company globally, with 2.9 billion monthly active users. Facebook, Inc. (NASDAQ: FB) also operates and develops the instant messaging apps Messenger and WeChat and photo-sharing app Instagram.
Truist analyst Youssef Squali maintained a Buy rating on Facebook, Inc. (NASDAQ: FB) on July 29 and increased the firm’s price target to $425 per share from $400, noting the company’s AR/VR technologies, as well as video and commerce, as significant growth drivers.
The company has a market cap of $1 trillion. In the second quarter of 2021, Facebook, Inc. (NASDAQ: FB) reported an adjusted EPS of $3.61, beating estimates of $3.03. The company’s second-quarter revenue was $29.08 billion, an increase of 58% year over year and beating revenue estimates of $27.89 billion. The stock has gained 31% year to date, and shares increased 9% in the last three months.
By the end of the first quarter of 2021, 257 hedge funds followed by Insider Monkey held stakes in Facebook, Inc. (NASDAQ: FB) with a total value of $40.9 billion.
In its Q2 investor letter, Wedgewood Partners mentioned Facebook, Inc. (NASDAQ: FB) and discussed its stance on the firm. Here is what the fund said:
“Facebook’s first-quarter 2021 revenues grew an astonishing +48% (constant currency), compared to +18% growth from a year ago. Unlike Alphabet, growing headcount +26% more recently. Facebook has pulled forward several years of investment during the past few years and has had a particular focus on content curation capabilities with the goal of making its platforms safer and more accessible for brands and users. The company should be able to increasingly automate these functions as its heavy investments in artificial intelligence, especially machine learning, yield productivity benefits. The stock continues to trade at a meaningful discount compared to other companies that are growing revenues this quickly and finished the quarter as our second-largest weighting.”
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