Analysis and Risk Assessment of FAAMG Stocks

Aryan Kasera
International Journal of Finance, Insurance and Risk Management, Volume 13, Issue 2, 86-104, 2023
DOI: 10.35808/ijfirm/357

Abstract:

Purpose: The primary motive of the research is to extract information regarding FAAMG stocks and hence, statistically measure, through the moving averages trading strategy as to measure the growth of the stocks in the past 5 years. Design/Methodology/Approach: The paper seeks to statistically measure the risk factors, using the trading strategy made, and other statistical measures, to determine the best giant tech investment. FAAMG stocks, has grown immensely popular amongst investors, and are owned by some of the world’s wealthiest people. Findings: However, against contrary belief, often, we believe in conventional wisdom to invest in the companies that, on paper, and news highlights, seem most probable to yield high returns. Yet, this is not the case always, which is why this research brings a different paradigm into assessing the market stability and risks of the investments in these companies. Practical implications: Seeing the huge shift in the use of technology for everyday work, owing to the global pandemic, there has been an increasing focus in the stock prices of these giants, and subsequently has attracted potential investors. Originality value: The FAAMG stocks refer to the major tech companies that have shown the highest growth since the dot com bubble erupted in the United States.


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