The puzzle of Europe

Re:The puzzle of Europe by Cilvic on Monday March 08, 2021 @04:39AM (#26383798)

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

[ Parent | on HN ]

Re:The puzzle of Europe by jiofih on Monday March 08, 2021 @04:52AM (#26383912)

Their value is higher than the combined GDP of Germany and Italy.

FAANG market cap: US$7T

USA GDP: US$20T

[ Parent | on HN ]

Re:The puzzle of Europe by oblio on Monday March 08, 2021 @05:11AM (#26384078)

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.).

[ Parent | on HN ]

Re:The puzzle of Europe by Cilvic on Tuesday March 09, 2021 @04:37AM (#26397010)

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".

[ Parent | on HN ]

Re:The puzzle of Europe by oblio on Wednesday March 10, 2021 @01:05AM (#26408298)

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.

[ Parent | on HN ]