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13.00% p.a. on FAANG: Investing in US Big Tech

Wednesday, 10 February 2021 Reading time : 3 minutes

ZKB Barrier Reverse Convertible on a FAANG-Basket
The ongoing pandemic has created trouble, but it also created some winners. Companies whose core businesses were already mainly on online channels were able to make further significant gains in 2020.

Not only was Netflix able to generate a positive free cash flow for the first time in 2020, but also significantly gained subscribers, exceeding the 200 million subscribers mark. The business model is now self-financing. The two American tech giants Amazon and Alphabet (Google) were able to generate impressive profit growth in the last quarter of 2020. Amazon was able to turn over more than USD 100 billion in a single quarter for the first time and further expand its market leadership in the online business. Alphabet increased Q4 earnings by 43% to USD 22.30 per share, well above estimates. ZKB Equity Research therefore rates all three stocks "overweight". In addition to these stocks, the FAANG basket also includes Facebook and Apple. Together, these five stocks alone already represent about 15% of the S&P 500 Index.

Key Data

  • Defensive barrier of 59.00%*
  • Attractive coupon of 13.00%* p.a.
  • Subscription period ends on 16.02.2021
  • Termsheet
*indicative
 

Disclaimer
This communication is for marketing purposes. It is neither an offer nor an invitation to submit an offer, to purchase or to subscribe to securities and does not constitute investment advice. You should consult your advisors before making an investment decision.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, financial condition, development or performance of the issuer to be materially different from any future results, financial condition, development or performance expressed or implied by such statements.
The present document has not been drawn up by the research department as defined in the rules of the “Directives on the Independence of Financial Research” published by the Swiss Bankers Association, hence these rules do not apply to this document.
If securities are mentioned in the communication, the base prospectus, the final terms and any key information document may be obtained free of charge from Zürcher Kantonalbank, Bahnhofstrasse 9, 8001 Zurich, VRIS, and from www.zkb.ch/finanzinformationen. 

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