Big news – Jim Cramer is unceremoniously pulling the plug on Netflix. This obviously destroys the FAANG acronym he created and which we have found useful in describing the phenomenal growth of a handful of “tech” companies: Facebook, Amazon, Apple, Netflix, and Google. He suggests substituting Microsoft and is in search of a new acronym.
We actually like this new one better. Jim was focused on performance, which is why he soured on Netflix all of a sudden. But we prefer to focus on the size of the companies and their long-term success. This group, now that it includes Microsoft and has dropped the much smaller Netflix, represents the five largest public companies (by value) not only in the US, but in the world.
Here they are as of 9/30/2019:
- Alphabet (aka Google)
From the top-down, the acronym would be the unwieldy “MAAAF.” But take it from the bottom and you get FAAAM. Let’s pronounce it “fame.”
Will they live forever? Perhaps not, but they are on top today. And the world is a different place as a result. More to follow.
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