It can be challenging enough to find great gifts for special people in your life, let alone gifts that will actually increase in value as the years go on. That's the beauty of giving (and receiving) stocks as a present.
Left with time to flourish and grow, even a relatively small investment can turn into something much more substantial. And while a stock certificate might not have the immediate sentimental appeal of a cherished toy or stylish article of clothing, keeping up with investments together can also be a bonding experience and source of excitement and entertainment through the years.
Read on for a look at a bundle of top stocks that could be a great gift for nearly anyone on your shopping list this holiday season.
Image source: Getty Images.
Hunting for holiday gifts? Look no further than FAANG
If you're on the hunt for a bundle of classic stocks backed by strong track records and businesses that are situated to thrive for decades to come, look no further than FAANG. With an acronym like that, an unsuspecting recipient could be forgiven for thinking that some kind of belated Halloween gag is afoot. Not this time!
This well-known group of stocks consists of Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), the parent company of Google. Each of these companies has access to incredible resources, and they're often grouped together because they play outsize roles in pushing the tech economy (and broader market) forward.
This table provides an overview of each company's market capitalization, business strengths, and growth opportunities:
| Company | Strengths | Growth Opportunities | Market Capitalization |
|---|---|---|---|
|
-- Billions of users across its Facebook, Instagram, and WhatsApp platforms |
-- Early leader in virtual reality and augmented reality, which could emerge as revolutionary social computing platforms |
$787 billion | |
| Amazon |
-- Top e-commerce platform |
-- Core e-commerce and cloud computing businesses both look poised for huge growth over the long term |
$1.6 trillion |
| Apple |
-- World's most valuable consumer technology hardware brand |
-- Brand strength positions the company to be one of the biggest winners in wearable technology |
$2.15 trillion |
| Netflix |
-- World's top-grossing and most profitable large streaming platform |
-- Plenty of room to increase subscriptions in international markets |
$236 billion |
| Alphabet |
-- Leading position in search engines and digital advertising |
-- Early leadership in potentially explosive growth markets including artificial intelligence and autonomous vehicles |
$1.17 trillion |
Data source: YCharts.
Each of the FAANG companies benefits from incredible economies of scale and has competitive advantages that should insulate it from the threat of disruption. Buying these stocks as a bundle also provides the benefits of diversification. If some FAANG members have an off year and suffer stock declines, strong performance for the other names could still easily move your investment into positive territory. And the long-term outlook for the group as a whole remains very promising.
The technology sector is on track to become increasingly important and to continue powering the stock market's overall gains because it also plays a key role in the progression of other industries and everyday life in general. Investing in FAANG stocks can be thought of as taking an ownership position in the companies and trends that are shaping our world today.
The joy of fractional shares
Based on today's prices, buying one share of each FAANG stock would set you back about $5,900. Buying just one share of Amazon would cost you roughly $3,200. But don't go Grinch just yet.
While the people in your life would likely be delighted to receive a gift on that magnitude, the simple reality is that giving such an expensive gift usually isn't sensible or feasible. You have to leave some gifting funds in the tank for next year, right?
The good news is that the trading of fractional shares is now possible on many brokerage platforms. That means you can give a friend or family member a $25, $50, or $100 bundle of stocks that includes each of the FAANG names. There probably won't be any holiday songs written about the joy of fractional shares anytime soon, but the ability to purchase portions of shares has created increased financial flexibility for investors -- and made it much easier to give a bundle of great stocks this holiday season.
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