By
Godfrey Benjamin
April 18th, 2024
With AAA consistently surpassing market targets, the coinage will most likely last longer than FAANG did.
The FAANG (NASDAQ: FANG), which consists of Facebook Inc (NASDAQ: FB), Apple Inc (NASDAQ: FB), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX), and Google LLC (NASDAQ: GOOG), has now become AAA. Formerly the FAANG, the group is now rebranded as AAA, meaning Amazon, Alphabet, and Apple. FAANG stocks began to dip when investors agreed to interest rates inflation in November. Following the decision, Facebook, now Meta, fell 29%, Apple added 15%, Amazon declined 9%, Netflix also fell 39%, and Google lost 3%. Stocks of Facebook and Netflix further dipped after last quarter’s results. On the other hand, Amazon, Alphabet Inc, and Apple stocks keep rising.
The three companies have stood the test of time and will remain together.
FAANG coinage lasted eight active years of performance development before becoming AAA. They worked hand-in-hand and surpassed analysts’ expectations. Their stocks thrived during the period of the coinage due to rule adherence and cooperation.
Meta has lost several investors due to its inadequate user interface. The technology company lost $232 billion shareholding value while sales plummeted 9%. It appears the company’s transition to Metaverse is less profitable. Meta’s rather draggy self-improvement on user specification made room for competitor Apps like TikTok to convert their users. Zuckerberg’s poor financial decisions have also greatly affected Facebook. While other firms turn away from a product, Facebook invests in it and ends up incurring more costs.
Netflix began online streaming and owned the center stage for years. Like Meta, Netflix also has competitors such as Disney+, HBO Max, and others that are constantly improving and expanding the streaming map. Unlike Facebook, Netflix’s price margin can be increased if a proper strategy is implemented.
FAANG Becomes History as AAA Era Begins
Recently, Amazon has exceeded stakeholders’ expectations as its market value grew to $191.4 billion last week. The float in market capitalization is born of a strong economic force and multiple streams of income. Amazon has revenue in its Prime, Advertising, and Cloud services. Amazon educates its customers, making it possible for them to make informed decisions patronizing them. Its Prime service allows subscribers to receive their items promptly. Their services are invaluable, making them have more than 200 million Prime members across the world.
Alphabet has outdone its first-quarter revenue reports by increasing by 32%. The Google parent company has a lot of revenue streams that keep beating expectations. The advertising revenue, which accounted for 81% of revenue, was up 33% more. Google Cloud revenue which was 45% to $5.54 billion, went higher by $70 billion. YouTube advertising revenue at $8.62 billion dropped to $240 million. Google tops the industry ahead of Facebook and Amazon. Stakeholders are eager to see how Alphabet will leverage strategies to keep increasing their shares.
Apple has always been optimistic about its supply chains. Their fourth-quarter revenue report increased 11% to $123.9 billion and a profit of $34.6 billion, exceeding expectations. Apple CEO Tim Cook said:
“We saw supply constraints across most of our products in the December ending quarter. We are forecasting that we will be less constrained in March than we were in the December quarter”.
With AAA consistently surpassing market targets, the coinage will most likely last longer than FAANG did. These three businesses have the prospective capabilities for a long-lasting relationship.