Summary:
Considering that Facebook changed their name to Meta, FAANG is not a proper acronym to describe the top technology companies. Mad Money's Jim Cramer coined the term FAANG in 2013. FAANG included Facebook, Amazon, Apple, Netflix and Google. New acronym, MAMAA, stands for Microsoft, Alphabet, Meta, Amazon and Apple.
Released Episode:
https://www.spreaker.com/episode/51301335
Quick Notes:
- Google renamed its parent company to Alphabet in 2015
- Netflix is being dropped for Microsoft
- Jim Cramer believes that Meta deserves a place in the top 5 because the company believe in reinventing themselves and the company's vision of the metaverse.
- "The Motley Fool extended this concept to include the top nine technology companies and created the acronym, MANAMANA. This includes Microsoft, Apple, Netflix, Amazon, Meta, Adobe, Nvidia and Alphabet. With MANAMANA they sought to capture an enormous spread of the American technology industry." - Kevin Theissen is the owner of HWC Financial in Ludlow
- These tech giants make up a sizable portion of the S&P 500 Index
- During this past decade, "FAANG stocks and Microsoft shares have grown faster than the overall S&P 500 or the more technology focused Nasdaq" - Adam Levy at The Motley Fool
- Meta owns a wide variety of commonly used applications such as Instagram, Facebook, WhatsApp, and Messenger. They are also leading the industry investment in the metaverse with their development of the Oculus headset
- Amazon make most of is revenue from business-to-customer e-commerce. It's prime membership has 200 million global subscribers. The also earn profits from their cloud computing services: AWS.
- Netflix was the first company to offer on-demand streaming after offering DVD-by-mail. They started investing in its own original content in 2012. As of 2022, they are one of the biggest buyers of film and television productions in the world.
- Alphabet is a tech conglomerate split between Google, YouTube, and other segments.
- Microsoft started as an operating systems to PC manufacture. In recent years, they operate in gaming, advertising, search engine, web portal, LinkedIn social network, and cloud computing.
- Netflix is no longer the sole provider of on-demand streaming. There are big competitors such as Warner Bros. Discovery, Disney, HBO Max, Hulu, etc. Netflix also missed the mark by not working with other platforms to provide "bundles" to their users, very similar to Hulu.
- as of 2022, Microsoft has been successful through the pandemic. They wrapped up the fiscal year (Jun 30, 2022) with $198.3 billion in revenue which was up 18% since 2021. This revenue is due to the companies focus on cloud computing
- At the same time, a whole generation of workers who staked their careers on the dream of technology were unemployed.
- It was later estimated that between 2001 and early 2004, Silicon Valley alone lost 200,000 jobs.
Resource Links:
- https://epiccapital.com/faang-is-now-mamma/
- https://www.yahoo.com/video/not-faang-mamaa-jim-cramer-163000145.html
- https://mountaintimes.info/what-is-mamaa/
- https://www.fool.com/investing/stock-market/market-sectors/information-technology/faang-stocks/
- https://www.wsj.com/articles/netflix-doesnt-work-streaming-bundling-ads-warner-bros-at-t-hbo-max-merger-business-model-entertainment-11662496991
- https://www.thestreet.com/dictionary/d/dot-com-bubble-and-burst
- https://ideas.ted.com/an-eye-opening-look-at-the-dot-com-bubble-of-2000-and-how-it-shapes-our-lives-today/
- https://www.investopedia.com/terms/f/faang-stocks.asp
- https://userguiding.com/blog/biggest-tech-companies/
Transcript:
Intro
Welcome to Episode 1 of “Weekend with Ms. SDE”. Thank you for listening, as I begin growing this podcast. Today's episode is about the tech giants of 2022. Before we start, let’s do a quick history lesson.
Do we all remember the dotcom tech bubble? In the late 90s and early 2000, this was when internet-related tech companies attracted a massive amount of attention from venture capitalist and traditional investors. The money eventually dried up causing the industry to implode leading to many tech companies crashing. This shocked the entire stock market. 48% of the companies involved in the asset bubble survived the crash. At the same time, a whole generation of workers who staked their careers on the dream of technology were unemployed. It was later estimated that between 2001 and early 2004, Silicon Valley alone lost 200,000 jobs. Before the bubble burst, telecom companies raised $1.6 trillion on Wall Street and floated $600 billion in bonds to crisscross the country in digital infrastructure. I am not going to focus too much on the stock market crash and its effects on the overall economy. Instead, we are going to talk about how those “tech players” have changed. This leads us to consider who we should be paying attention to now. Some of the companies that survived the crash were Amazon, Adobe Systems, eBay, IBM, Oracle, and SanDisk. Some of the companies that didn’t survive were Boo.com, Pets.com, Webvan and Worldcom. Looking back, there may have been too many companies competing for too few users. When the bubble burst in 2000, there were only around 400 million people online worldwide. Ten years later, there would be more than 2 billion.
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#1
In 2013, Mad Money’s Jim Cramer coined the acronym FAANG to describe the top tech companies. This acronym was short for Facebook Amazon Apple Netflix and Google. After the dot com era, these companies rose to the top in regards to stocks to watch, great places to work, new innovations, and more. These tech giants make up a sizable portion of the S&P 500 Index and their combined market capitalization is over $4 trillion. During this past decade, Adam Levy at The Motley Fool mentions that "FAANG stocks and Microsoft shares have grown faster than the overall S&P 500 or the more technology focused Nasdaq". They are famous for their remarkable growth in recent years.
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#2
After COVID and the pandemic, the leading tech giants have slightly shifted along with their core business functions and development. Facebook has renamed their parent company to Meta. Meta now owns a wide variety of commonly used applications such as Instagram, Facebook, WhatsApp, and Messenger. They are also leading the industry investment in the metaverse with their development of the Oculus headset. Appley has been a household name and is known for their user-friendly style and approach. With their work in electronics, software and online services, Apple’s annual revenue was $365.817B in 2021. Apple has been producing various tech devices, from computers to wearables for years. By market capitalization, Apple is the world’s biggest and richest company. Amazon makes most of its revenue from business-to-customer e-commerce. Its prime membership has 200 million global subscribers. They also earn profits from their cloud computing services: AWS.
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#3
Back around 2013, Netflix was the first company to offer on-demand streaming after offering DVD-by-mail. They started investing in its own original content in 2012. As of 2022, they are one of the biggest buyers of film and television productions in the world. Since then, other streaming platforms have grown such as Hulu, HBO Max, Amazon Prime, Disney+, and others. These platforms have invested in themselves and have drawn users away by providing bundle packages and unique content. Alphabet is a tech conglomerate split between Google, YouTube, and other segments. The company also invests in various start-ups and companies of different sizes in the tech industry: smart home projects, self-driving cars, cloud-gaming systems, and more.
Considering the streaming platform market and poor recent stock performance, Netflix is being dropped for Microsoft. New acronym, MAMAA, which stands for Microsoft, Alphabet, Meta, Amazon and Apple has started to circle around. As of 2022, Microsoft has been successful through the pandemic. They wrapped up the fiscal year with $198.3 billion in revenue which was up 18% since 2021. Microsoft started as an operating system for PC manufacture. In recent years, they operate in gaming, advertising, search engine, web portal, LinkedIn social network, and cloud computing. MATANNA is also being considered and that includes Microsoft, Apple, Tesla, Alphabet, Nvidia, and Amazon. NVIDIA is an American multinational technology company known as the inventor of the graphics processing unit. They focus on creating interactive graphics on laptops, workstations, mobile devices, notebooks, PCs, and more. Tesla is a multinational automotive and clean energy company. They design and manufacture electric vehicles, battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services.
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#4
Obviously, there are more companies and industries that I didn’t mention that are causing shockwaves in consumer markets and driving technology. Companies such as Adobe, Samsung Group, Tencent Holdings, Cisco Systems, Oracle, IBM, Dell, and others. You are seeing fast development in software and hardware capabilities. When you see a new software release or hear development predictions, these companies are typically in the headlines. On the other hand, when there are concerns for government and public safety, these companies are under strict scrutiny to address concerns and develop solutions.
This episode is meant to lay the foundation for future conversations concerning cyber security, space exploration, social media influence, outdated tech infrastructure, education revolution and more. In recent news, we hear about governments committing cyber crimes or the lack of tech infrastructure in water treatment plants. You see cities investing in “smart city redesign” and school boards pushing for more computer science courses. This episode was intended to make listeners aware of the largest companies leading these technological developments which may be good or bad, depending on your point of view. You can see the unintended economic impact “giant tech” can have on the overall world economy. In the next episode, we will be focusing on the social media impact of Facebook, Instagram, and TikTok has had on society.
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End
If you are hearing this message, you’ve listened to the entire episode and for that, I want to thank you from the bottom of my heart! I always post my resources and notes on my blog at https://weekendwithmssde.blogspot.com/, along with my script for today’s episode. You can always email me at weekendwithmssde@gmail.com for questions and discussions on any of my topic points discussed during the show.
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See you next week for a new episode!
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