This holiday season, many iPhones and Oculus virtual reality headsets will undoubtedly be given as gifts.Millions of people will also shop and watch streaming services with their families online, which is a sure thing.Businesses will almost certainly continue to move their apps and data to the cloud throughout the remainder of the year and into 2023.
The so-called FAANG stocks will see an increase in sales as a result of all of this.However, I believe that one member of this group currently stands out more than the others.The FAANG stock I think is the best to buy in December is listed below.
By logical elimination, I believe that each of the five FAANG stocks has positive aspects.Notwithstanding, I likewise feel that some of them can be precluded as the best through the straightforward course of sensible disposal.
Let’s begin with Meta Platforms (META 2.53%), which I believe to be the most risky FAANG stock.Meta, in my opinion, is not as bad as some people think it is.However, the company is unquestionably betting a lot on the metaverse. Whether or not that wager will pay off remains to be seen.Due to its high level of risk, I would remove Meta from the list of the best FAANG stocks for the time being.
Netflix (NFLX 1.09 percent)
seems to be getting better.However, the company’s primary issue is the increasing level of competition in the streaming market.It just doesn’t feel like Netflix will be able to bring back the glory of its past to me.
In 2022, Apple (AAPL -0.34%) is the FAANG stock with the best performance.However, considering that the tech giant’s shares have decreased by nearly 20% year-to-date, that is not a particularly impressive honor.
Apple’s long-term prospects still excite me.Outside of exchange-traded funds (ETFs), the stock is actually the largest position in my personal portfolio.However, prior to purchasing Apple shares, it might be best to wait to see how the COVID-19 situation develops in China.
What is Amazon’s (AMZN -1.44%) situation?
Another FAANG stock that I really enjoy is this one.The company still has bright long-term prospects.Amazon’s valuation is more attractive than it has been in a long time because its shares have fallen by more than 40% year to date.However, I will readily admit that Amazon’s trend of free cash flow is somewhat troubling.
Only Alphabet (GOOG -0.44%) (GOOGL -0.55%)
remains after these four stocks have been eliminated.Despite the strengths of the other stocks, I believe Google is the best FAANG stock to buy in December.
Why I like Alphabet Yes, the stock of Alphabet has fallen significantly this year.Notwithstanding, thus, the organization’s portions exchange at just multiple times anticipated profit.The PEG (price to earnings to growth) ratio of Alphabet is 1.36.This last metric is significantly lower than any other FAANG stock.
Alphabet’s financial position remains rock-solid.Over the past year, it generated $282 billion in revenue and profits of nearly $67 billion.During that time, Alphabet generated levered free cash flow in excess of $58 billion.The company has a cash reserve of more than $116 billion.
A robust underlying business is the direct cause of this financial situation.Google Search has an unrivaled market share.Android is still the world’s most popular mobile operating system.Google Cloud is arguably winning the cloud wars and continues to deliver robust growth.
Additionally, I believe that Alphabet has more novel growth opportunities than any other FAANG stock.The Waymo self-driving car unit is one of the company’s well-known “other bets,” along with several other businesses that have the potential to be significant long-term winners.
Letter set faces a few dangers.A monetary slump would hurt publicizing income, which keeps on being the essential gold mine for the organization.YouTube’s dominance is clearly and immediately at risk thanks to TikTok.It’s possible that Alphabet’s other wagers will fail.
However, any slowdown in advertising would only be brief.With the increasing use of YouTube Shorts, I believe YouTube will be able to compete with TikTok.In addition, only a few of Alphabet’s other bets’ successes could ultimately alter the game.
Again, not all FAANG stocks are appealing in the same way.Most of them are mine.However, if I had to choose just one right now, it would unquestionably be Alphabet.