GAFAM has an indisputable king: this company crushes Google, Amazon and Facebook together

News hardware GAFAM has an indisputable king: this company crushes Google, Amazon and Facebook together

Now we learn the acronym GAFAM at school. Google, Apple, Facebook, Amazon, Microsoft: The 5 companies that rule over technology and the web shape the daily lives of billions of people. Today, a significant event has occurred: one of these digital giants crushes all the others in terms of market capitalization.

Let’s start with a little reminder. The name “GAFAM” has been known for well over ten years, but it’s actually a little bit outdated. For 3 reasons:

  • New companies can be added to the list, of course we think about that You are here initially.
  • Facebook is now called Metacan we talk about GAMAM then?
  • Between these 5 giants there are now huge ones power deviations. That is what this article is about.

Back to the title. When we talk about the “king” of GAFAM, we can expect industrial giants pulling the strings in the shadows of the general public. Truth be told, this angle is possible, such companies exist.

For example, we can mention the Taiwanese giant TSMC, which produces the chips for most of the high-tech items you use every day. TSMC’s pricing, inventory and technical advancements set the tone for nearly the entire industry.

We could talk about this for a long time, but it is not the subject of this article. No, the company that crushes everything is not a shadow player, on the contrary. Enough excitement, the “king” of GAFAM is quite simple Apple.

Today, the Cupertino company’s market capitalization exceeds that of Google, Amazon and Meta…combined.

At the close on Wednesday, November 2, 2022, Apple’s market cap was 2.307 billion dollars . To better visualize this absurd figure, tell yourself that it is equivalent to Canada’s GDP, higher than Brazil’s or Russia’s and just below France’s.

If we add the market values ​​of the 3 other giants mentioned earlier, Google, Amazon and Meta, we arrive at 2.306 billion dollars. Here you go.

GAFAM has an indisputable king: this company crushes Google, Amazon and Facebook together

The year 2022 is very special. The crazy growth after the health crisis that marked the year 2021 is behind us. Against the backdrop of geopolitical tensions, the year 2022 is above all characterized by high inflation and a desire to save money by both households and companies.

Faced with this situation at the beginning of the crisis, Apple is a much safer bet than the other members of GAFAM. Compared to the peak in 2021, Apple has “only” lost 18% of its value. By comparison, Google lost 38%, more than double that of Apple. Tesla rises to 41.8% loss, Amazon to 44.5% and Meta, big loser, is at 77% loss.

GAFAM has an indisputable king: this company crushes Google, Amazon and Facebook together

Many reasons explains Apple’s resistance to the difficult year that is 2022. Some are quite technical, but we can mention the 4 most obvious:

  • Apple doesn’t care about the drastic drop advertising revenue (which greatly affects companies like Meta or Facebook) as they mainly sell iPhones.
  • Apple no longer has management than its competitors on its margins.
  • Apple anchors itself a kind of luxury economy thanks to its brand image: fans of the brand will spend no matter what, sales of high-end products are much less hampered by inflation than sales of entry-level products.
  • Apple has invested heavily in its models iPhone 14 Pro, and this strategy works. We learned very recently that the demand for these particularly expensive models even exceeds the supply.

Note, this situation of extreme dominance by Apple is not forever. The world is in an unstable period, things can change quickly.

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