INSIGHTS

Valuing Technology: How FAANG and BAT Changed the Markets

Twenty years ago, the most valuable companies were in retail, banking and resources. With the advent of the 4th Industrial Revolution, tech companies now dominate stock markets. Only five or six nations have a greater GDP than the combined market capitalisation of the four top companies – Apple, Google, Amazon and Facebook (collectively as FAANG). The market capitalisation of the top five US companies – Apple, Alphabet, Amazon, Facebook and Microsoft – is US $ 3 trillion. In China, Alibaba & Tencent (which, with Baidu make up what is known as BAT) are among the largest companies in the tech-media space with Tencent passing Facebook late last year with a market cap of $ 500 BN and Alibaba at $ 486 BN. These firms have more influence on our society than any entities in the world right now, other than China or the US. In their race to become the first trillion dollar company, they all get faster, better at serving customers and continuous innovation changes the very nature of life, society, business and the markets.