FAANG

Updated Oct 9, 2020 · 3 min read

What is FAANG?

FAANG is an acronym that refers to the top-performing technology companies: Facebook, Amazon, Apple, Netflix, and Google. The term was coined by CNBC’s Mad Money host Jim Cramer who highlighted these companies for their high influence and overall dominance in the information technology sector.

The acronym was originally shorter, written as FANG, when it was first used by Jim Cramer, in which he left out Apple. But with Apple’s continued growth, the company was later added, creating the five-letter acronym most commonly used today.

FAAMG

The acronym excluded Microsoft due to the company’s comparative lack of meteoric growth in the past two centuries, similar to companies like IBM who have shown slowed innovation in the information technology sector. However, in 2014, Satya Nadella became the new CEO of Microsoft and helped revamp the company and its image.

As a result, FAAMG is sometimes used instead of FAANG, replacing Netflix with Microsoft. The term was coined by Goldman Sachs to refer to the technology companies that have a total market cap of half a trillion dollars or more. Sometimes the companies in FAAMG are also referred to as the Big Five or Big Tech.


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