According to the data provider FactSet, since 2012, mutual fund, pension fund<br />and hedge fund holdings of stock in the five technology giants have more than doubled, to $1.4 trillion, from $558 billion — a consequence of investors’ buying up stocks that are rapidly increasing in value.<br />In the last three years, their share prices have risen far faster than the major market indexes — Amazon leads the way, up 206 percent;<br />Apple trails the pack with a 67 percent gain — as investors of virtually every stripe have piled into these companies.<br />For example, the current stock market size of the Faang companies is $2.4 trillion, or about 13 percent of the size of the United States economy.<br />“So yes, you can see how valuations would get extended.”<br />Technology companies make up the five most valuable companies in the world by market capitalization.<br />While skeptics see just $2 billion in earnings, he and his analysts see a company<br />that has generated more than $15 billion in cash and is ready for a higher market rating because of the profitability of its web services division.<br />“Yet that is how the market is pricing it.”<br />Another well-known value manager who is betting big on Faang stocks is Chris Davis, the lead<br />stock picker for the $11.8 billion New York Venture Fund, where Amazon is his top position.
