Although the Canadian stock market offers investors outstanding companies to hold in their portfolio, I believe it’s a great idea to invest in international companies. Among international companies, the FAANG stocks are among the best companies to hold. If you’re unfamiliar with that term, FAANG refers to five of the largest companies in the world. This includes Facebook (Meta Platforms), Apple (NASDAQ: AAPL), Amazon, Netflix, and Google (Alphabet).
In this article, I’ll discuss my top FAANG stock to buy for the second half of 2023 and beyond!
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What is my top FAANG stock?
If I could only invest in one FAANG stock, it would be Apple. This is because of its dominance within the global consumer technology industry. In the first quarter (Q1) of 2023, it’s estimated that Apple held a 21% share of the global mobile phone market. That makes it the second-largest player in that space. However, we know that Apple’s presence is much larger than that.
Apple plays a vital role in the laptop/computing, music, and visual media industries. With all of that in consideration, it’s safe to say that Apple’s presence in the global economy is unmatched. That may be why Apple is listed as the largest American stock at just a little under US$3 billion.
Apple regularly announces new products to consumers, and I think one product is set to make this stock soar higher than it has ever before. That would be the Vision Pro. To many, it would be Apple’s entry into the virtual reality (VR) market. However, Apple’s chief executive officer Tim Cook prefers to call it the world’s first “spatial computer.” By that, he means that users would be able to remain present in the physical world while wearing the headset.
Although it’s hard to predict how this product will affect Apple stock, we can use Apple’s old products as a benchmark. When Apple first released the iPhone, investors saw a massive jump in Apple stock. The company’s stock continued to rise in response to the success of other products and services such as Macbooks, Apple TV, the Apple Watch, and more.
How has Apple stock performed lately?
Like many other growth stocks, Apple stock struggled to gain any momentum in 2022. In fact, the stock lost more than a quarter of its value over that year. However, since then, Apple stock has started to rebound. Year to date, Apple stock has gained about 40%. That kind of success is nothing new for Apple stock. Looking back at its five-year performance, investors can note a gain of about 223%.
Foolish takeaway
The FAANG stocks could be a great option for investors looking for growth. It also allows Canadians to diversify into another country’s economy. Of that group of outstanding companies, Apple stands out as my top pick. I believe this company’s strong business performance and the possibility of intriguing products like Vision Pro could help push this stock to greater heights.
