FANGS vs BATS

FANGS vs BATS

Facebook, Amazon, Netflix and Google aka (FANGs) are popular companies that have dominated many people’s lives. Individuals rely on these companies to connect with their loved ones through Facebook, shop online through Amazon, watch the latest movies and series through Netflix and search for all sorts of information on Google. These companies have become an integral part of our social lives.

And when it comes to investment, they also offer great opportunities for persons who’ve bought shares over the years. The share price movements of these companies are all you need to see the great opportunity that investors have.

For instance, in 2013, Facebook was trading their shares at $25.73, but as we speak, the number has risen to $193. And if one had bought shares on Amazon in 2013 at $260, they’ll now be smiling their way to the bank as they can trade them at around $1665. And on the other hand, shares on Netflix have risen by $337.66 since the year 2013. While if someone invested in stocks on Google still in 2013, which were at $399.94, they could sell the shares at $1153.

There is no accurate way of predicting how fast and high the share prices from these four companies will move in the coming years. But one sure thing is that the FANGs will continue to grow, thanks to innovation, advanced technology and need to remain relevant to their clients.

The BATs

The FANGs are not the only ones in the market. The FANGs have the BATs as competitors on the other side of the globe, in China. Since America has FANGs, China does have BATs-Baidu, Alibaba and Tencent.

Even though not many people know about the BATs as they do about the FANGs, this is no reason to ignore them. If you are always connected to the internet, or you shop online regularly, or you are an investor, there’s a high probability that you’ve directly or indirectly dealt with the BATs. That’s because the companies operate globally and have other companies within them that are already providing services to consumers worldwide. Let’s have a look at them one by one.

  • Baidu

It is a multinational company which is dedicated to delivering internet related products and services. Similar to Facebook, this company also has an online advertising platform. Baidu is also among the top app development companies, and it creates downloadable content and artificial intelligence. There are allegedly two billion users of this site worldwide.

Back in 2013, its share price was $85.02, but as of March 2018, the shares were at $262.39.

  • Alibaba

Just like Amazon is the A in FANGs, Alibaba is the A in BATs. Well, you may think that it competes directly with Amazon in selling and distributing consumer items online, but, the company has moved and expanded beyond just the consumer products. Alibaba has explored other forms of online distribution such as consumer to consumer, business to business and business to consumer transactions.

The company has continued to widen its reach in the media and financial services industry too. So, both consumers who want to make their purchases online and business owner who want to sell their items online can benefit a lot from this site. In September 2014, the stock price was $93.89, but it moved to a high of $200.28 in March 2018.

  • Tencent

The company may not be as common as Baidu and Alibaba in the BATs category, but for sure it has built a network of businesses via the internet and using advanced technology such as Artificial Intelligence. It fills the social media space in China, but it also has a strong presence in e-commerce, online mobile games, smartphones and online payment systems. The shares in 2013 cost HKD 50.60, but the price increased to HKD 471.20 in February 2018.

The BATs are still growing their presence in the global market. But they offer a variety of services which improves the quality of life of many people. And like the FANGs, the BATs are not going anywhere soon. As an investor, you may also want to consider the incredible opportunity that the BATs offer.