But what does FAANG stand for and where did this acronym come from? Let’s take a closer look.
What Does FAANG Stand For?
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?
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.
