Initially, you might think that the world is being dominated by technology giants. Indeed, it…
FAANG revenue and net income figures for FY 2019
FAANG is the acronym for the tech giants Facebook, Amazon, Apple, Netflix and Google.
In 2019, the total revenue from these five tech companies amounted to a staggering $674 billion.
To put that into context, if FAANG were a Country, it would be the 10th biggest economy in the world just behind Canada.
What are FAANG stocks?
FAANG stocks are public shares traded for Facebook (FN), Amazon (AMZN), Apple (AAPL), Netflix (NLFX) and Google(GOOGL).
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Facebook is the 4th largest company out of the FAANG group but the third most profitable. After Google, it also has the largest number of users.
The Facebook business model is based on the hidden revenue model. In other words, Facebook users use the platform for free in exchange and advertisers pay to be able to promote products/services to users.
Amazon is the eCommerce giant and has the largest turnover out of the FAANG stocks. However, it principally sells third-party products and hence makes less margin than those companies that sell their own products e.g. Apple.
The Amazon business model is diversified. Within Amazon, there are several different services and business models e.g. Amazon Prime Video (a subscription business model).
| Products And Services: | Amazon.com, Amazon Echo and Alexa, Amazon Kindle, Amazon Music, Audible, Amazon AWS, iMDb, Junglee, PillPack, Twitch, Whole Foods Market, Zappos.com |
Apple is the second largest of the FAANG group by revenue but the largest by net income. The Apple business model has changed from a pure product company to a product and service offering.
| Company name: | Netflix |
| Founders: | Reed Hastings and Marc Randolph |
| Annual revenue: | 2019: $20.16 Billion |
| Profit | Net Income: | 2019: $1.86 |
| Market Cap: | (April, 2020): $423 Billion |
| Year founded: | 1997 |
| Company CEO: | Reed Hastings |
| Headquarters: | Los Gatos, USA |
| Link: | Netflix |
| Number of employees: | (FY 2019): 8,600 |
| Type of business: | Public |
| Ticker symbol: | NLFX |
| Products And Services: | Video On Demand, |
| Company Competitors: | Amazon Prime Video, Apple TV+, Disney+, HBO, Hulu, Vevo, YouTube |
Unlike many of the other FAANG members, the Netflix business model hasn’t changed over time.
| Products And Services: | Android, Chromecast, FitBit, Google Ads, Google Cast, Google Chrome, Google G-Suite, Google Pay, Google Pixel, Google Play, Google Music, Nest, Wear OS, YouTube |
| Company Competitors: | Microsoft, AOL, Facebook, Apple, Amazon, Samsung, Baidu |
The Google business model is still dominated by its huge advertising revenues. However, they are investing heavily in ‘other bets’ that may yet see new revenue streams and growth in the future.