Large product-based companies might be a great choice for many budding programmers, however, for many employees, smaller firms, startups and Indian corporations seem like a much better choice. Multiple factors influence the choice of companies that are suitable for certain individuals.
Some people are meant to perform better in startups while some human assets will be able to project their peak performance in larger MNCs where one is tasked with a particular job but is required to perform his or her job roles much more extensively.
Even among MNCs,FAANG companies are above the rest in terms of value and presence but they have certain conditions that do not justify skilled employees choosing them among the rest.
Certain goals and learning requirements cannot be fulfilled effectively while working in FAANG companies, many of these elements determine joining companies other than these five to be a better choice.
What is a FAANG Company?
The term "FAANG" is used to describe the world's top five highly successful and well-known technology companies: Facebook, Amazon, Apple, Netflix, and Google (now Alphabet). These companies have been performing incredibly well for the last few years and have been grouped together as FAANG to represent the top-performing corporations. FAANG companies are economic powerhouses and acquired a combined Net Income of $121.5 billion in the financial year of 2019. These companies perform so well, and their products are used by so many customers around the world that if these companies together could form a country, it would be the 10th largest economy on this planet.
What Are FAANG Stocks?
FAANG companies are known for their high market capitalization, innovation, and influence on the tech industry and global economy. FAANG stocks have consistently outperformed the market in recent years, and their success has led to increased scrutiny and concerns about their impact on competition, privacy, and societal issues. Despite these challenges, FAANG companies remain some of the most highly valued and well-known technology companies in the world, with significant influence on the tech industry and global markets.
Brief description of FAANG stocks
Facebook
Facebook is a social media platform that connects billions of users all over the world and offers various services and products like Facebook, Instagram, WhatsApp, and Oculus VR. Facebook is constantly innovating and expanding its reach, and it is one of the most influential companies in the world. Facebook also leads the AR-VR sector and is heavily investing in the metaverse.
Amazon
Amazon is an e-commerce and cloud computing company. It started as an online marketplace and today has expanded into various industries, including cloud services (Amazon Web Services), digital streaming (Prime Video), smart devices (Echo), and many more. Amazon is also a leader in cloud computing, and its Amazon Web Services platform is used by businesses of all sizes. Amazon is also known as the hub of engineers, as it consists of a large number of engineers across the world, making it top employable among the FAANG.
Apple
Apple is a multinational tech giant known for its consumer electronic products like iPhones, iPads, Mac computers, Apple Watch, and services like Apple Music and iCloud. It is also known for its innovative software, including the iOS operating system and the macOS operating system. Apple is one of the most valuable companies in the world, and its products are loved by people all over the globe. The work-life balance at Apple is quite impressive.
Netflix
Netflix is a popular online streaming service that provides a vast collection of TV shows, movies, and original content. Today Netflix has transformed the entertainment industry by popularizing the concept of streaming on-demand content. Netflix is available in over 190 countries, and it has over 200 million subscribers worldwide. Among the FAANG, Netflix offers the highest salary to freshers and has a recognized remote culture.
Google
Google is best known for its internet-related products and services. It offers the world's most widely used search engine, online advertising technologies, cloud computing (Google Cloud), operating systems (Android), and many more. Google is constantly innovating and expanding its reach, and it is one of the most powerful companies in the world. It is crowned as the best company in the world in terms of work-life balance and has amazing offices across the world.
Importance of FAANG Companies
FAANG companies are important because they are some of the largest and most successful technology companies in the world, with significant influence on the tech industry and global markets. Their success has led to increased innovation, investment, and job creation in the tech sector, as well as significant returns for investors. However, their dominance has also raised concerns about competition, privacy, and societal issues, and there are growing calls for regulation and accountability. Overall, FAANG companies represent a major force in the modern economy, and their impact will continue to shape the future of technology and society for years to come.
FAANG Stocks
1-year FAANG Returns* (in terms of INR)
3-year FAANG Returns* (in terms of INR)
5-year FAANG Returns* (in terms of INR)
Facebook
10463
20456
80154
Amazon
20154
45644
94656
Apple
12254
42458
78946
Netflix
19445
36475
84565
Google
41454
96463
201212
Investing in FAANG stocks
Investing in FAANG stocks can be done through a brokerage account. Investors can purchase shares in individual companies or through a diversified fund such as an exchange-traded fund (ETF) or mutual fund that includes FAANG stocks. It's important to research the company's financial health, management, and competitive position before investing, as well as stay up-to-date with market trends and news that can affect the company's stock price. Diversification is also important, as investing in a single stock can be risky. It's recommended to consult with a financial advisor to determine an appropriate investment strategy based on individual risk tolerance and investment goals.
Which FAANG company pays the most?
It's difficult to say definitively which FAANG company pays the most, as the compensation packages for each company's employees can vary widely depending on factors such as job title, location, and experience. However, in general, these companies are known for offering highly competitive compensation packages, including generous salaries, bonuses, and stock options. In terms of median salary, Google (now Alphabet) and Facebook are often cited as among the highest-paying companies in the tech industry. However, it's worth noting that salary is just one aspect of compensation, and other factors such as benefits, work-life balance, and company culture can also be important considerations for job seekers.
Issues with the FAANG Trend
The FAANG trend has caused massive confusion within the minds of freshers as well as experienced candidates. This is due to the impression that one must get into one of these 5 companies to succeed in life or in the Information Technology field.
The problem with this trend mainly originates from the prioritizing of which companies to aim for. Certain companies prove to be much better for specific individuals, especially those who wish to go into other fields or those who need special attention and mentorship. FAANG companies provide great opportunities to learn and have great managers or mentors, however, the attention one gets in smaller companies is much more focused.
The main issue with the FAANG trend is that many talented or skilled human assets who could have performed much better in other companies are being forced to try for FAANG companies, failing which they are demotivated by peers and institutes.
This should not be the case, as many candidates are suited for other companies and would perform much better in other types of projects.
Frequently Asked Questions
Why is Microsoft not part of FAANG?
FAANG companies are the best-performing product-based companies in terms of revenue, net income, and turnovers. FAANG companies are not necessarily the best IT companies or companies with the best working environment and job satisfaction. However, in the case of Microsoft, the huge MNC experienced minimal growth for some years before 2014 and became quite static. This was the main reason why Microsoft was kept out of FAANG companies. However, after 2014, Microsoft picked up the pace, eventually becoming one of the biggest companies in the world again and taking Netflix’s place to form the acronym “ FAAMG”.
What are the 5 FAANG stocks?
The 5 FAANG stocks are Facebook, Amazon, Apple, Netflix, and Google (now Alphabet). These stocks are some of the most highly valued and well-known technology companies in the world, with significant influence on the tech industry and global markets.
What is the full form of FAANG?
FAANG is an acronym that stands for Facebook, Amazon, Apple, Netflix, and Google. These are five of the largest and most valuable technology companies in the world. FAANG stocks have been some of the best-performing stocks in the market over the past decade.
How hard is it to crack FAANG?
It is difficult to "crack" FAANG companies, as they are highly valuable, established, and have significant market share. However, they are not invulnerable to challenges such as competition, regulation, or disruptive technologies, which can impact their growth and profitability over time.
Why is Netflix a part of FAANG?
Netflix is considered part of FAANG (Facebook, Apple, Amazon, Netflix, Google) due to its significant market presence and influence in the tech and entertainment sectors. As a leading streaming service, Netflix has demonstrated substantial growth and innovation, warranting inclusion in the FAANG grouping.
What is the difference between FAANG and Mamaa?
FAANG includes Facebook, Apple, Amazon, Netflix, and Google. On the other hand, MAAMA includes Microsoft, Apple, Amazon, Microsoft, and Alphabet (Google's parent company). The key difference between the two is that FAANG includes Netflix, while MAAMA includes Microsoft twice.
Conclusion
FAANG companies are arguably one of the best corporations in the world, however, care must be taken when deciding upon which company to choose. Many employees might see much more growth in terms of job satisfaction and position in smaller or other big Indian companies.
Being a part of these five companies sounds great, however, many other factors might seem much more desirable for certain individuals. One must not limit himself or herself to just these five topproduct based companies. Candidates should look beyond these five companies and understand what is truly the best for them and then accordingly take the decision.
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