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The tech industry is expected to grow at a 7% to 10% rate this year. Given this backdrop, fundamentally sound FAANG companies Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (GOOGL), and Facebook, Inc. (FB) are well-positioned to witness stable growth and, thus, are solid bets now.
However, similar to China, the Biden administration also plans to stimulate further competition and stop further consolidation in the U.S. tech industry, which may not bode well for Amazon.com, Inc. (AMZN). Also, the decelerating growth prospects of Netflix, Inc. (NFLX) amid intense competition in the OTT space could lead to the stock witnessing a downtrend. Thus, we think these two FAANG stocks are best avoided now.
