If you've spent any time in online communities about stocks or technology, you've probably heard the acronym FAANG before.
But what does FAANG stand for and where did this acronym come from? Let's take a closer look.
What Does FAANG Stand For?
FAANG is an acronym used in finance technology (or fintech) companies, that refers to five of America's leading technology companies. As you may or may not have already guessed, these companies are: Facebook, Amazon, Apple, Netflix, and Google.
Each of these companies are among the most valuable businesses in the world, hence the acronym. Combined, the companies have a market capitalization of $7.1 trillion, which shows just how important they are.
Where Did the FAANG Acronym Come From?
Originally, the acronym was limited to Facebook, Amazon, Netflix, and Google; excluding Apple. The acronym was first used in 2013 by Jim Cramer, who highlighted these companies for their dominance and influence in the tech industry.
In 2017, the acronym was expanded to include Apple due to the company's continued growth.
Alternative Acronyms to FAANG
Different acronyms and phrases are also used to describe alternative groupings of influential tech companies. The original acronym conspicuously excluded another major tech company that has been among America's most valuable since it was founded in 1975: Microsoft.
When the term FAANG was originally coined, it included companies that were considered highly innovative with increasing stock growth. As said by the former CEO of Google Eric Schmidt in 2011, a view shared by many at the time, “Microsoft is not driving the consumer revolution in the minds of the consumers”.
More recently, the FANMAG acronym has gained popularity, which includes Microsoft.
Will You Start Using FAANG?
While FAANG refers to five specific prominent tech companies, it is a very fluid term. As companies become more or less prominent, the acronym may change. The term is a reflection of the fluid nature of the tech industry, which is continually changing and evolving.
Author: Carly Chatfield
Source: Carly Chatfield.” What Does FAANG Stand For?”. Retrieved From https://www.makeuseof.com/what-does-faang-stand-for/
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