Hold on "FANG" stocks: Bank of American Merrill Lynch just added two more names to the popular simple portfolio after finding multiple stocks that share their tremendous growth potential. You can now call it "FAAANG."
The original FANG of Facebook, Amazon, Netflix and Alphabet (formerly known as Google) was created and popularized and Adobe (ADBE) to the popular Wall Street acronym after screening large-cap technology stocks for ones with similar features.
The stocks have had high-flying market success and lofty valuations, making them easy targets for skittish profit-takers should the stock market turn sour. But the companies have also posted continued sales growth and corresponding share price growth, making them enticing opportunities for investors.
The original FANG stocks are all up over 20 percent since January, with Facebook leading the group with a 48 percent year-to-date share price climb. But Adobe and Broadcom have also notched sizable gains, up 36 percent and 44 percent respectively. Note that the short interest on the FAAANG group is near a record low of 0.9 percent.
Short interest is the quantity of stock shares that investors have sold short but not yet covered or closed out. It is often used as a sentiment indicator that tells whether investors believe a stock's price is likely to fall.