The FAAMG Bubble has plenty more room to deflate after a decade + of outperformance

The FAAMG Bubble has plenty more room to deflate after a decade + of outperformance.

What Are FAAMG Stocks?

FAAMG is an abbreviation coined by Goldman Sachs for five top-performing tech stocks in the market, namely, Meta$Meta Platforms(Facebook), Inc.(META)$ $Amazon.com(AMZN)$ $Apple(AAPL)$ $Microsoft(MSFT)$ $Alphabet(GOOG)$ $Alphabet(GOOGL)$. FAAMG may also go by the acronym,GAFAM.

FAAMG originated from the original acronym FANG, which was coined by CNBC’sJim Cramer. FANG did not include Apple and Microsoft but did include Netflix$Netflix(NFLX)$ . The new variation of the biggest tech companies does not include Netflix because of its relatively small market capitalization compared to the other five companies in FAAMG. Another variation,FAANG, includes Netflix in place of Microsoft.

Since the start of the year, FAANG share prices have fallen by anything up to almost three quarters (in Meta’s case) and disappointing earnings announcements last week prompted a further mini-rout. So is this now a buying opportunity?

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