Investing in FAANG stocks — Facebook, Apple, Amazon, Netflix, and Google (Alphabet) — is often an easy decision for growth investors. These are the top tech stocks in the world and they continue to rise in value. They all soundly outperformed the S&P 500 and its 16% returns in 2020, with the worst-performing stock, Alphabet, rising 31% while Apple soared 81%.
But the problem with investing in those stocks is that they may not have as much growth potential left. Apple, for example, posted an incredible $274.5 billion in revenue in its most recent fiscal year, but that was just 5.5% higher from the previous year’s total. For even better growth opportunities, investors should look outside of FAANG. Two stocks that look to be more promising buys are Roku (NASDAQ: ROKU) and Teladoc Health (NYSE: TDOC).