Overrated: Only 20% of FAANG Stocks Feature in 21st Century’s 10 Best-Performers
- Only a fifth of FAANG stocks appear in the list of 10 best performing stocks of the 21st century.
- The best-performing stock in the last two decades is not a Silicon Valley wunderkid.
- Netflix and Apple save the day, however.
For years, FAANG stocks (Facebook, Amazon, Apple, Netflix, and Google) have received the adulation of investors as must-own stocks. Unfortunately, this might have given the impression that they were the only equities capable of delivering spectacular growth.
This has proven not to be true as a new list of the ten best-performing stocks of the 21st century prepared by HowMuch.net, a cost-estimating website, only features two FAANG stocks – in second and seventh positions no less.
The period under review for the top 10 best-performing stocks ranged between December 31, 1999 and October 22, 2019. The only two FAANG stocks that appear in the list are Netflix (NASDAQ: NFLX) and Apple (NASDAQ: AAPL).
Netflix and Apple save FAANG the embarrassment
According to the cost-estimating site, Netflix was the second best-performing U.S.-listed stock of the 21st century. An investment of $100 in Netflix in 2000 has grown 22,971% and is now valued at $23,071. The online video streaming giant went public in 2002.
The only other FAANG stock in the list, Apple, was the seventh best-performing stock since 2000. An investment of $100 made in the iPhone maker has grown 7,316% and is now worth $7,416. Apple IPO’d nearly four decades ago.
So, which companies edged out the other FAANG stocks such as Facebook, Amazon and Google from making it in the top ten? The list includes financial services firms, healthcare companies and retailers.
Monster capital gains
The best-performing stock of the last two decades has been energy drink maker Monster Beverage (NASDAQ: MNST). Since 2003, when the firm IPO’d, an investment of $100 in the stock has grown 62,344% to reach a value of $62,444.
Ahead of Apple are data center operator Equinix (NASDAQ: EQIX), agricultural retailer Tractor Supply Company (NASDAQ: TSCO), robotic-assisted surgical equipment maker Intuitive Surgical and software maker Ansys (NASDAQ: ANSS).
In the last two decades, an investment of $100 in Equinix has grown by 11,950% to reach $12,050. On the other hand, an investment of the same amount in the agricultural retailer has grown by 10,071% to reach $10,171. Meanwhile, a $100 investment in Intuitive Surgical has appreciated by 9,055% to reach $9,155. A similar investment in Ansys went up by 7,756% to hit $7,856.
Who said Silicon Valley is king?
FAANG stock Apple only managed to beat agricultural laboratory supplies firm IDEXX Laboratories (NASDAQ: IDXX), payments firm Mastercard (NYSE: MA) and discount department retailer Ross Stores (NASDAQ: ROST) in the list.
An investment of $100 in IDEXX Laboratories grew by 6,722% to hit $6,822. A similar investment in Mastercard and Ross Stores grew by 6,179% and 5,903% to hit $6,279 and $6,003, respectively.
This article was edited by Sam Bourgi.