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US is very much pumped up by their FAANG stocks. It is not very representative of wealth of the country in general. If one were to take other things in into acc

US is very much pumped up by their FAANG stocks. It is not very representative of wealth of the country in general. If one were to take other things in into account quality of life, time spent with family/friends, is US really better off?

Cilvic 6y ago
I'd also like to understand how much of GDP would be accounted for by FAANG
- jiofih 6y ago
  Their value is higher than the combined GDP of Germany and Italy. FAANG market cap: US$7T USA GDP: US$20T
  - oblio 6y ago
    Well, market cap isn't GDP. Market cap is what people think a company is worth. You want to look at revenues/sales, since GDP is formed out of consumption. So that would make things a bit more comparable. Getting back to FAANG: Amazon: $386bn Apple: $274bn Google: $182bn Netflix: $25bn Facebook: $85bn So that would bring the numbers up to $925bn. Now, a lot of this revenue is global, so the US stuff is probably 50% or less. However, a big chunk of this global revenue is the thing that allows US salaries to be so high. Also, if we were in normal times, these companies would repatriate their profits and be taxed in the US, plus these profits would be reinvested in the company or invested in the US. So I'd count the US "contribution" not as strictly half ($462bn) but more likely closer to $600bn. Also, FAANG is a catchy name but it's not a good economic representation. Netflix is big-ish, it's a household name, but it's much smaller than the others. There are also some big companies missing from it: Microsft: $143bn Oracle: $39bn Adobe: $11bn Salesforce: $17bn IBM: $73bn Dell: $92bn Intel: $71bn HP: $58bn Cisco: $51bn So that's another $546, using the same "formula" from above, probably another $350bn "contribution" for the US. And that's just the absolute A tier plus the B+ tier. If we start including B (Uber, big but debt ridden; ServiceNow, etc.) and C tiers (ever heard of Axway?), I imagine we get to $1500-2000bn easily, especially since I forgot to add numbers for some big B+ tier companies up there (Broadcomm, Qualcomm, etc.).
    - Cilvic 6y ago
      Thanks a lot, so out of ~$20T US GDP, we get anywhere from anywhere between $1-2T from the list list above, maybe even more if we make the list "long".
      - oblio 6y ago
        I'm guessing it's even higher since the long tail is really long. There are many, many more mid-sized and small US companies and startups and even though they make a lot less individually, there's so many of them. Personally I'd suspect that all these small companies combined probably make more than the big companies combined.
bof_ 6y ago
Like Ireland?

Cilvic 6y ago

I'd also like to understand how much of GDP would be accounted for by FAANG

jiofih 6y ago
Their value is higher than the combined GDP of Germany and Italy. FAANG market cap: US$7T USA GDP: US$20T
- oblio 6y ago
  Well, market cap isn't GDP. Market cap is what people think a company is worth. You want to look at revenues/sales, since GDP is formed out of consumption. So that would make things a bit more comparable. Getting back to FAANG: Amazon: $386bn Apple: $274bn Google: $182bn Netflix: $25bn Facebook: $85bn So that would bring the numbers up to $925bn. Now, a lot of this revenue is global, so the US stuff is probably 50% or less. However, a big chunk of this global revenue is the thing that allows US salaries to be so high. Also, if we were in normal times, these companies would repatriate their profits and be taxed in the US, plus these profits would be reinvested in the company or invested in the US. So I'd count the US "contribution" not as strictly half ($462bn) but more likely closer to $600bn. Also, FAANG is a catchy name but it's not a good economic representation. Netflix is big-ish, it's a household name, but it's much smaller than the others. There are also some big companies missing from it: Microsft: $143bn Oracle: $39bn Adobe: $11bn Salesforce: $17bn IBM: $73bn Dell: $92bn Intel: $71bn HP: $58bn Cisco: $51bn So that's another $546, using the same "formula" from above, probably another $350bn "contribution" for the US. And that's just the absolute A tier plus the B+ tier. If we start including B (Uber, big but debt ridden; ServiceNow, etc.) and C tiers (ever heard of Axway?), I imagine we get to $1500-2000bn easily, especially since I forgot to add numbers for some big B+ tier companies up there (Broadcomm, Qualcomm, etc.).
  - Cilvic 6y ago
    Thanks a lot, so out of ~$20T US GDP, we get anywhere from anywhere between $1-2T from the list list above, maybe even more if we make the list "long".
    - oblio 6y ago
      I'm guessing it's even higher since the long tail is really long. There are many, many more mid-sized and small US companies and startups and even though they make a lot less individually, there's so many of them. Personally I'd suspect that all these small companies combined probably make more than the big companies combined.

bof_ 6y ago

Like Ireland?