Why is Microsoft not apart of FAANG?

Why is Microsoft not apart of FAANG?

Can you imagine a world without Microsoft? It's hard to picture, isn't it? Microsoft has been a constant pioneer in the world of technology, revolutionizing the way we work and communicate. It has created some of the most widely used software products, and even ventured into the gaming market with incredible success. With all its accolades, one might wonder why Microsoft isn't in FAANG, the prestigious and exclusive group of tech giants comprising Facebook, Amazon, Apple, Netflix, and Google. In this blog, we'll unpack why Microsoft isn't in FAANG and whether it should be.

 

First, let's define what FAANG is and what its criteria are for inclusion. FAANG is an acronym for the top-performing tech stocks on the US stock market: Facebook, Amazon, Apple, Netflix, and Google. These tech giants have a market capitalization of over $4 trillion and have experienced exponential growth in the last decade. They are considered some of the biggest and most influential companies globally and have changed the way we interact with technology.

 

FAANG with Microsoft on top

 

So why is Microsoft absent from this prestigious group? One reason is that FAANG, unlike what the industry might believe, is not just about market capitalization. While it does play a significant role in determining a company's inclusion, there are other factors at play, such as innovation, growth potential, customer loyalty, and brand reputation. Microsoft is a massive company, but its growth has been considerably slower than the five FAANG giants. This lack of exponential growth may have kept Microsoft from joining the elite group.

 

Another critical aspect that sets apart the FAANGs from others is their focus on specific industries such as social media (Facebook), online retail (Amazon), and streaming (Netflix). It could be argued that Microsoft's broad range of products and services for both consumers and enterprises could be one of the reasons it's not included in the group. Microsoft has had varying degrees of success in many technology areas such as gaming, personal computing, and cloud services. This might be viewed as a lack of specialization.

 

Biggest companies in the world

 

However, Microsoft's absence from FAANG does not mean that it's a mediocre company. Microsoft's commitment to innovation with new products like Xbox, HoloLens, Teams, and Surface indicates its drive to remain relevant in the highly competitive tech market. Its Azure cloud computing platform has become a crucial player in cloud computing, making it one of the major platforms providers in the market. Additionally, its acquisition of LinkedIn has only served to strengthen its enterprise division. Its market capitalization puts it consistently among the highest-ranked companies and rarely experiences significant losses.

 

Furthermore, accessibility is another factor that's crucial to Microsoft's value proposition. Microsoft's products and services are not exclusive to affluent consumers alone; it offers a wide range of products and services that are affordable to the masses, from low-end laptops to enterprise-level software. Microsoft has also made significant strides in providing free software such as Visual Studio Code, attracting developers worldwide. This level of accessibility sets it apart from the negative reputation that FAANG companies get for being exclusive and inaccessible.

 

World

 

In conclusion, although Microsoft is not in FAANG, it's still an incredibly valuable and relevant company in the tech industry. Its absence from the group does not diminish its worth nor does it make it less competitive. Microsoft's breadth of services, innovation, accessibility, and market capitalization firmly secure its place as a significant player in the tech industry. Its commitment to mobility and developing products for mass consumption could differentiate it from the rest. Microsoft may not be in FAANG, but that doesn't impact the perception that the industry has of its business acumen and growth prowess.

 

So to answer the question, does Microsoft need to be in FAANG? The answer is a resounding no. Microsoft's worth extends beyond its membership in any exclusive club, and it has proved time and again that it can hold its own in the sphere of tech innovation. Its contributions to the industry are undeniable and will undoubtedly continue to revolutionize technology.

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