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The Big 5 tech companies are Apple, Amazon, Facebook, Microsoft, and Google. They are the largest companies by market capitalization and have been dominating the tech industry for years.
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Google is an American multinational technology company that specializes in Internet-related services and products. These include online advertising technologies, search, cloud computing, software, and hardware. Google was founded in 1998 by Larry Page and Sergey Brin while they were Ph.D. students at Stanford University in California.
History
Google was founded in 1998 by Sergey Brin and Larry Page. They met while they were both PhD students at Stanford University. They created a search engine called ‘Backrub’ that used links to determine the importance of individual webpages. This led to the development of the PageRank algorithm, which is still used by Google today.
In 2000, Google received $25 million in funding from Sequoia Capital. This allowed them to expand their operations and move into a larger office. In 2001, they introduced Google AdWords, which allows businesses to place ads on Google’s search engine.
In 2004, Google went public with an initial public offering (IPO) of $85 per share. Since then, the company has grown rapidly and now has over 70,000 employees in more than 100 countries.
Products and Services
Google offers a wide range of products and services, many of which are free.
The company’s most popular products include its search engine, Gmail, Maps, Drive, and YouTube. Other services include the Android operating system, the Chrome web browser, and the hardware products Chromebooks and Pixel smartphones. Google also offers enterprise services such as cloud computing, productivity tools, and advertising solutions.
Revenues
The five largest tech companies in the US by revenue are Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Facebook (FB), and Microsoft (MSFT). They are often referred to as the “Big Five” or the “GAFAM” companies.
Alphabet, the parent company of Google, is the largest tech company in the US by revenue. In 2020, Alphabet reported total revenues of $182.5 billion. The majority of Alphabet’s revenue comes from advertising, which accounted for $155.4 billion in 2020.
Amazon is the second-largest tech company in the US by revenue. In 2020, Amazon reported total revenues of $280.5 billion. The majority of Amazon’s revenue comes from e-commerce sales, which accounted for $232.9 billion in 2020.
Apple is the third-largest tech company in the US by revenue. In 2020, Apple reported total revenues of $274.5 billion. The majority of Apple’s revenue comes from iPhone sales, which accounted for $192.8 billion in 2020.
Facebook is the fourth-largest tech company in the US by revenue. In 2020, Facebook reported total revenues of $88.9 billion. The majority of Facebook’s revenue comes from advertising, which accounted for $84.2 billion in 2020.
Microsoft is the fifth-largest tech company in the US by revenue and the only one of the Big Five that is not a consumer-facing company. In 2020, Microsoft reported total revenues of $143.1 billion. The majority of Microsoft’s revenue comes from commercial cloud services, which accounted for $52.5 billion in 2020
Amazon
Amazon is one of the Big 5 tech companies, along with Apple, Facebook, Google, and Microsoft. Amazon is a multinational technology company based in Seattle, Washington, that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence.
History
The big five tech companies, also known as the FAANG stocks (Facebook, Amazon, Apple, Netflix, and Google), have been some of the most valuable and well-performing stocks in recent years. While there are other large technology firms not included in the FAANG stocks (Microsoft, for example), these five companies have been some of the biggest news-makers and market-movers in the tech sector.
The FAANG stocks have seen phenomenal growth in recent years, with Amazon and Netflix leading the pack. Amazon’s market value has more than quadrupled since 2013, while Netflix’s market value has more than tripled. While Facebook and Google are not far behind, Apple has lagged somewhat, although it is still up more than 50% from its 2013 lows.
Investors have been drawn to the FAANG stocks for several reasons. First of all, these are large companies with a long track record of growth. They are also leaders in cutting-edge industries such as e-commerce, online advertising, and streaming media. Furthermore, theFAANG stocks have less exposure to traditional businesses such as retailing or manufacturing, which have been struggling in recent years.
Despite their impressive run in recent years, there are some risks associated with investing in the FAANG stocks. For one thing, these companies are very reliant on consumer spending, which can be volatile. Moreover, they are facing increased scrutiny from regulators around the world. Finally, their high valuations leave them vulnerable to a sharp sell-off if investor sentiment turns negative.
Products and Services
Amazon is a multinational technology company based in Seattle, Washington, that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Microsoft, and Facebook.
Amazon was founded by Jeff Bezos in 1994 as an online bookstore and has since expanded to offer a variety of products and services, including:
-E-commerce
-Cloud computing
-Digital streaming
-Artificial intelligence
Amazon has also developed the Kindle, a tablet device that allows direct book purchases and downloads. In addition to its online retail business, Amazon also operates Amazon Web Services (AWS), a cloud computing platform. Amazon is also a major provider of digital content and services through its Amazon Prime subscription service.
Revenues
Amazon, Alphabet (GOOGL), Facebook (FB), Microsoft (MSFT), and Apple (AAPL) are often referred to as the big 5 tech companies. They are the five largest companies in terms of market capitalization in the tech industry Amazon is the largest of the five with a market cap of $1.6 trillion as of January 2020. Alphabet (GOOGL) is second with a market cap of $1.0 trillion, followed by Facebook (FB) at $573 billion, Microsoft (MSFT) at $537 billion, and Apple (AAPL) at $1.2 trillion.
The big 5 tech companies are leaders in their respective fields. Amazon is the largest e-commerce company in the world with revenue of $280 billion in 2019. Alphabet is the parent company of Google, the world’s largest search engine with over 90% market share. Facebook is the world’s largest social media platform with 2.5 billion monthly active users as of December 2019. Microsoft is the world’s largest software company with revenue of $127 billion in 2019. Apple is the world’s most valuable company with a market cap of $1.2 trillion as of January 2020.
These five companies have a combined market cap of $4.8 trillion and account for 18% of the S&P 500 Index’s total market cap as of January 2020.
Apple
Apple is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. The company’s hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, and the HomePod smart speaker. Apple’s software includes the macOS and iOS operating systems, the iTunes media player, the Safari web browser, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Music, Apple TV+, iMessage, and iCloud.
History
Apple was founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The company began as a maker of personal computers, but it soon diversified into other consumer electronics product lines, such as digital music players and smartphones. Today, Apple is one of the largest and most valuable companies in the world.
In recent years, Apple has come under scrutiny for its tax practices and labor relations. However, the company continues to be highly profitable, and its share price has reached record highs.
Products and Services
Though Apple is well-known for its iPhones, the company also offers a variety of other products and services, including the iPad, Apple TV, Apple Watch, MacBooks, and more. In addition to hardware, Apple offers consumers various apps and services through its App Store and iTunes Store. The company also recently introduced its own streaming service, Apple Music.
Revenues
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. The company’s hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, and the HomePod smart speaker. Apple’s software includes the macOS and iOS operating systems, the iTunes media player, the Safari web browser, and the iWork productivity suite. Its online services include the iTunes Store; Azure Active Directory; Microsoft Office 365; Xbox Live; and iCloud.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak’s Apple I personal computer kit. It was incorporated as Apple Computer, Inc., in January 1977,[16] and went public in December 1980 with an initial public offering of $22 per share ( split adjusted for subsequent stock splits).[17][18] Jobs immediately started working on a successor to the Apple I known as the Apple II.[19]
In August 2011[20] it was announced that 200 million devices were running some form of iOS,[21] 150 million of which were iPhones sold since 2007.[22][23] In September 2012 he announced that there were 700 million iOS devices sold,[24][25][26] including 300 million iPhones in July 2010.[27] By October 2013 there were more than 725 million iPhones actively in use worldwide,[28][29] according to Tim Cook who said on October 22 at AllThingsD that year’s model was “the best iPhone we’ve ever made.”[30][31] On November 18 he announced that there were 733 million iPhones in use worldwide.[32]’
Facebook is one of the Big 5 tech companies, and it is the largest social networking company in the world. Facebook was founded by Mark Zuckerberg in 2004, and it has over 2.6 billion monthly active users. The company’s mission is to give people the power to share and connect with each other.
History
Facebook is a social networking service launched as TheFacebook on February 4, 2004. It was founded by Mark Zuckerberg with his college roommates and fellow Harvard University students Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes. The website’s membership was initially limited by the founders to Harvard students, but was expanded to other colleges in the Boston area, the Ivy League, and Stanford University. It gradually added support for students at various other universities before opening to high school students, and eventually to anyone aged 13 and over.
Products and Services
Facebook is a social networking service that allows users to connect with friends and family as well as make new connections. The site is free to use and sign up for, and users can create a profile, add photos and videos, send messages, and join groups. Facebook also has a number of features for businesses, including the ability to create a Page, run ads, and promote products and services.
Revenues
In 2018, Facebook generated $55.8 billion in revenue, up from $40.6 billion in 2017. Of that, 97% came from advertising, with the rest coming from things like fees for use of Facebook’s Messenger service.
Microsoft
Microsoft Corporation is an American multinational technology company with headquarters in Redmond, Washington. It develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services.
History
Microsoft Corporation is an American multinational technology company with headquarters in Redmond, Washington. It develops, manufactures, licenses, supports and sells computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite of productivity software, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface tablet lineup. As of 2016, it was the world’s largest software maker by revenue (and since 2018 has been ranked as the fourth-largest IT company in terms of revenue). The word “Microsoft” is a portmanteau of “microcomputer” and “software”.
Microsoft was founded by Bill Gates and Paul Allen on April 4, 1975, to develop and sell BASIC interpreters for Altair 8800. It rose to dominate the personal computer operating system market with MS-DOS in the mid-1980s, followed by Microsoft Windows. The company’s 1986 initial public offering (IPO), and subsequent rise in stock price created three billionaires and an estimated 12,000 millionaires from MSFT employees. Since the 1990s onward, Microsoft has increasingly diversified from the operating system market and has made a number of corporate acquisitions. In May 2011, Microsoft acquired Skype Technologies for $8.5 billion in its largest acquisition to date.
Products and Services
Operating Systems:
-Windows
-Office and productivity software
-Server software
Enterprise software:
-Azure
-Dynamics CRM and ERP
-SQL Server
-Visual Studio
Consumer products:
-Bing search engine
-HoloLens mixed reality headset
-MSN web portal and apps
Revenues
1. Google – $74.54 billion
2. Microsoft – $70.61 billion
3. Amazon – $177.87 billion
4. Apple – $265.59 billion
5. Facebook – $56.62 billion
