3 Incredible FAANG Stocks You’ll Want to Add to Your Portfolio in September

It’s been a while since the so-called FAANG stocks were all must-have names. Other companies like Nvidia and Microsoft since then they stole their thunder. The advent of artificial intelligence (AI) has helped this, of course.

However, with AI euphoria finally starting to fade — and the economy easing its way back to normal — investors should soon start to see how all the things that made FAANG stocks so of good applies even now. That’s why you may want to step into some of them sooner or later, especially considering that several of these stocks are trading at a discount right now.

Here’s a closer look at three FAANG stocks that are the best bets for September.

1. Amazon

Amazon (AMZN 3.71%) has been very different from Amazon since the beginning of July. Share prices are currently down more than 10% from that month’s record high and are continuing to decline, heading for a historically tough month for the stock market.

At least part of the weakness comes from the company’s second-quarter earnings miss. Although sales of $148 billion were up 10% year over year, analysts were calling for a top line of $148.7 billion. Investors flinched, and understandably so.

You might want to step back and look at the bigger picture, though.

The truth is that Amazon is still a growth roller that no other e-commerce player wants to compete with. It controls about 40% of the US online shopping market (according to data from eMarketer), outpacing its closest competitor. Walmartwithin his reach. And as a name that’s almost synonymous with the e-commerce industry, it’s arguably better positioned than any rival to capture more than its share of the industry’s continued growth. It’s also doing pretty well outside the US; Last quarter’s international e-commerce revenue was up nearly 7%.

However, perhaps Amazon’s most underrated growth engine is its cloud computing arm. Amazon Web Services sales improved nearly 19% year-over-year during the three-month period ended in June, leading to a 74% increase in operating income of its cloud business. Both numbers extend well-established trends that should continue into the distant future. Market research team Mordor Intelligence believes that the global cloud computing industry will grow at an annual rate of more than 16% until 2029.

So why is Amazon stock pulling back? It has a lot to do with the volatile market environment itself and even more to do with the stock’s big run from the late 2022 low to the June high. There are a lot of opportunistic profits here. However, this is actually a long-term opportunity for you.

2. The alphabet

Ditto for parent Google, Alphabet (GOOG 1.05%) (GOOGL 0.99%). That is, the stock has been down since early July, thanks to a combination of market-wide weakness and an earnings stumble in the second quarter. Although its overall result of $1.89 per share was better than expected, YouTube’s revenue came up short.

Oh, There is also the possibility that the Department of Justice may soon recommend a breakup of the company.

In early August, a federal court ruled that “Google is a monopolist and has acted as one to maintain its monopoly.” While the company prepares an appeal to the decision, the court continues. The next step in the process is the DOJ’s proposal for a remedy, scheduled for filing no later than September 4, with an all-party meeting scheduled for September 6. At the very least, the Justice Department is expected to ask Alphabet to give up its Chrome browser or its Android mobile operating system, or both. The Company may also be required to share more of the collected data with third parties.

It’s certainly a disturbing prospect on the surface. Alphabet’s success depends heavily on dominating several facets of how people navigate the Internet. Even if just one of them goes down, Google’s reach is seemingly disproportionately weakened.

However, maybe it isn’t.

Sure, Android drives people to the Google Play app store. Chrome and Google online services such as Gmail and Google Docs work very well together. Google is the default search engine on many manufacturers’ connectable devices because Alphabet can afford to outbid other search engine operators for this destination.

However, thinking that consumers won’t seek out these services and tools without a nudge from Google may be wishful thinking on the part of the DOJ. People love Google search engine because it is simple and effective. Owners of Android devices — the world’s most used mobile operating system — will find Google Play anyway. People like Chrome only because Chrome works well.

That doesn’t mean the Department of Justice and the US judiciary can’t rattle investors more than they already have. Together or in pieces, however, Alphabet’s winning ad business will be OK.

3. Apple

Last but not least, he adds Apple (AAPL -0.34%) to your list of FAANG stocks to buy in September.

Apple stock has performed quite differently from Alphabet or Amazon lately. While both Amazon and Apple shares are down after big gains, Apple shares are now trading near record highs after a significant slump between early 2022 and April of this year.

What has changed? Artificial intelligence. Although it was a little late to the AI ​​party, Apple is making up for lost time. In June, the company introduced what it calls “Apple Intelligence,” which turns Apple’s latest iPhones and iPads into full generative AI devices capable of handling this heavy lifting without moving the effort to the cloud (where the best artificial products for consumers). currently the information activity is carried out). This development is expected to reignite iPhone sales, which have long stagnated in terms of revenue as well as individual units.

The thing is, the release of Apple Intelligence will likely do just that, but perhaps even more than expected. Technology market research firm IDC predicts that shipments of generative AI smartphones will grow from 234 million units this year to more than 900 million such devices in 2028, when smart-capable smartphones artificial will represent almost 80% of the global mobile phone market.

Already the world’s most popular smartphone, Apple’s iPhone is well-positioned to capture more than its fair share of this growth.

The Kicker: While Apple will certainly enjoy any revenue boost that comes from the impending improvement in iPhone sales, getting the company’s popular handset into the hands of more consumers does something else that’s arguably even more rewarding. That is, it sets the stage for even more service revenue. Services is now not only Apple’s second-largest business, but also (by far) its highest-margin business.