Category: Alphabet

How Do Big Tech Giants Make Their Billions?


This post is by Carmen Ang from Visual Capitalist


A Breakdown of Big Tech Revenue Streams

How Do Big Tech Giants Make Their Billions?

In 2021, the Big Five tech giants—Apple, Amazon, Google (Alphabet), Meta, and Microsoft—generated a combined $1.4 trillion in revenue.

What are the sources of this revenue, and how does it breakdown?

Below, we’ll dive into the main ways that these big tech giants generate revenue, and take a look at how much their revenues have increased in recent years.

Breaking Down Big Tech’s Revenue Streams

As we’ve mentioned in previous editions of this graphic, there are two main ways that big tech companies generate revenue:

  • They either sell you a product
  • Or sell you as the product to advertisers

Apple, Microsoft, and Amazon fall into the first category—like most traditional businesses, these companies offer customers a physical (or digital) product in exchange for money. More than half of Apple’s revenue comes from iPhone sales, Azure cloud services generate almost a third of Microsoft’s total, and Amazon’s online stores account for nearly 50% of the company’s revenue.

On the other hand, Meta and Alphabet do things a bit differently. Rather than selling an actual product, these two tech giants make most of their money by selling their audience’s attention. Nearly 98% of Meta’s revenue comes from Facebook ads, and 81% of Google’s revenue comes from advertising on various Google products.

However, despite their varying ways of generating sales, these companies all have one thing in common: revenues have soared in recent years.

The Pandemic Has Sped Up Growth

Amidst rising unemployment and pandemic-induced (Read more...)

A Visual Guide to Stock Splits


This post is by Nick Routley from Visual Capitalist


a visual guide to stock splits

A Visual Guide to Stock Splits

Imagine a shop window containing large pieces of cheese.

If the value of that cheese rises over time, the price may move beyond what the majority of people are willing to pay. This presents a problem as the store wants to continue selling cheese, and people still want to eat it.

The obvious solution is to divide the cheese into smaller pieces. That way, more people can once again afford to buy portions of it, and those who want more can simply buy more of the smaller pieces.

cheese and stock splits

The total volume of the cheese is still worth the same amount, it’s only the portion size that changed. As the infographic above by StocksToTrade demonstrates, the same concept applies to stock splits.

Like wheels of cheese, stocks can be split a number of different ways. Some of the more common splits are 2-for-1, 3-for-1, and 3-for-2. Less common splits can take place as well, such as when Apple increased its outstanding shares by a 7-to-1 ratio in 2014.

Why Companies Do Stock Splits

Of course, stocks aren’t cheese.

The real world of the financial markets, driven by macro trends and animal spirits, is more complex than items in a shop window.

If companies want their stock price to continue rising, why would they want to split it, effectively lowering the price? Here are a some specific reasons why:

1. Liquidity
As our cheese example illustrated, stocks can sometimes see price appreciation to the point (Read more...)

From Greek to Latin: Visualizing the Evolution of the Alphabet


This post is by Omri Wallach from Visual Capitalist


Visualizing the Evolution of the Alphabet

From Greek to Latin: Visualizing the Evolution of the Alphabet

Over the course of 2021, the Greek alphabet was a major part of the news cycle.

COVID-19 variants, which are labeled with Greek letters when becoming a variant of concern, normalized their usage. From the Alpha variant in the UK, to the Delta variant that spread from India to become the dominant global strain, the Greek alphabet was everywhere. Seemingly overnight, the Omicron variant discovered in South Africa has now taken the mantle as the most discussed variant.

But the Greek alphabet is used in other parts of our lives as well. For example, Greek letters are commonly used in mathematics and science, like Sigma (Σ) denoting a sum or Lambda (λ) used to represent the half-life of radioactive material.

And the study of linguistics shows us why using Greek letters in English isn’t completely farfetched. This visualization from Matt Baker at UsefulCharts.com demonstrates how the modern Latin script used in English evolved from Greek, and other, alphabets.

It’s All Proto-Sinaitic to Me

Before there was English, or Latin, or even Greek, there was Proto-Sinaitic.

Considered the first alphabet ever used, the Proto-Sinaitic script was derived in Canaan, around the biblical Land of Israel. It was repurposed from Egyptian hieroglyphs that were commonly seen in the area (its name comes from Mount Sinai), and used to describe sounds instead of meanings.

Proto-Sinaitic Letter (Reconstructed Name)Original Meaning
ʾalpox
baythouse
gaml throwstick
dagfish
haw/hillulpraise
waw/uphfowl
(Read more...)

The World’s Most Used Apps, by Downstream Traffic


This post is by Omri Wallach from Visual Capitalist


The World’s Most Used Apps by Downstream Traffic

The World’s Most Used Apps, by Downstream Traffic

Of the millions of apps available around the world, just a small handful of the most used apps dominate global internet traffic.

Everything connected to the internet takes bandwidth to view. When you look at something on your smartphone—whether it’s a new message on Instagram or the next few seconds of a YouTube video—your device is downloading the data in the background.

And the bigger the files, the more bandwidth is utilized. Here’s a breakdown of the most used apps by category, using Sandvine’s global mobile traffic report for 2021 Q1.

Video Drives Global Mobile Internet Traffic

The biggest files use the most data, and video files take the cake.

According to Android Central, streaming video ranges from about 0.7GB per hour of data for a 480p video to 1.5GB per hour for 1080. A 4K stream, the highest resolution currently offered by most providers, uses around 7.2GB per hour.

That’s miles bigger than audio files, where high quality 320kbps music streams use an average of just 0.12GB per hour. Social network messages are usually just a few KB, while the pictures found on them can range from a few hundred KB for a low resolution image to hundreds of MB for high resolution.

Understandably, breaking down mobile downstream traffic by app category shows that video is on top by a long shot:

CategoryDownstream Traffic Share (2021 Q1)
Video Streaming48.9%
Social Networking19.3%
Web13.1%
Messaging6.7%
(Read more...)

Which Companies Belong to the Elite Trillion-Dollar Club?


This post is by Iman Ghosh from Visual Capitalist


Companies in the Trillion-Dollar Club Main

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Which Companies Belong to the Elite Trillion-Dollar Club?

Just a handful of publicly-traded companies have managed to achieve $1 trillion or more in market capitalization—only six, to be precise.

We pull data from Companies Market Cap to find out which familiar names are breaking the 13-digit barrier—and who else is waiting in the wings.

Footnote: All data referenced is as of August 17, 2021.

The Major Players in the Game

Apple and Microsoft are the only two companies to have shattered the $2T market cap milestone to date, leaving others in the dust. Apple was also the first among its Big Tech peers to ascend to the $1 trillion landmark back in 2018.

CompanyValuationCountryAge of company
Apple$2.48T?? U.S.45 years (Founded 1976)
Microsoft$2.20T?? U.S.46 years (Founded 1975)
Saudi Aramco$1.88T?? Saudi Arabia88 years (Founded 1933)
Alphabet (Google)$1.83T?? U.S.23 years (Founded 1998)
Amazon$1.64T?? U.S.27 years (Founded 1994)
Facebook$1.01T?? U.S.17 years (Founded 2004)

Facebook dipped in and out of the $1T+ club in July 2021, (Read more...)

Growth is not enough



Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

We were a smaller team this week, with Natasha and Alex together with Grace and Chris to sort through a week that brought together both this quarter’s earnings cycle, and the Q3 IPO rush. So, it was just a little busy!

Before we get to topics, however, a note that we are having a lot of fun recording these live on Twitter Spaces. We’ve found a hacky way to capture local audio and also share the chats live. So, hit us up on Twitter so you can hang out with us. It’s fun – and we may even bring you up on stage to play guest host.

Ok, now, to the Great List of Subjects:

  • Robinhood went public! Yep, at long last, it is done. The company priced at $38 per share, the low end of its range, and had a medium-weak day of trading once it started to float. In short, Robinhood seems to have deftly priced its IPO, leaving zero fat on the table. So, it is now richer than ever, and public. More here.
  • Earnings! We took a moment to chat about earnings reports from Alphabet, and Microsoft, and Shopify. Why? Because we care lots about the cloud and platform companies. So, we took a minute to chat about public cloud results, and what Shopify got up to.
  • Batteries! Tesla is moving towards (Read more...)

Anticipating the Driverless Future of Vehicles



The following content is sponsored by eToro

eToro Driverless Future Full

eToro CopyPortfolios

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Anticipating the Driverless Future of Vehicles

With the rapid rise of electric vehicles (EVs) and increased investments in autonomous driving, what was once the future of vehicles is quickly becoming a present day reality.

By 2040, EVs are forecast to account for more than half of global annual car sales. A 2020 Consumer Reports survey showed that 31% of U.S. consumers said they are interested in an EV for their next car purchase, with another 40% saying they’re interested in EVs for a future purchase.

And the drive is no longer fueled by just a few players like Tesla. Every major automaker and several Silicon Valley giants are investing billions in the future of vehicles.

This infographic from eToro takes a detailed look at how a driverless future is taking shape right before our eyes.

Driverless Developments in Electric and Autonomous Vehicles

Investments in future-friendly cars are now commonplace—as are new vehicle releases—but for a long time, automakers hesitated to make the electric transition.

With the meteoric rise of Tesla, now a household name in EVs and self-driving vehicles, it’s now clear to the world’s automakers that the pivot to EVs could pay off. As of June 2021, two 100% electric car companies make it onto a list of the highest valued automakers in the world.

RankCompanyMarket Cap (June 2021)
#1Tesla (100% Electric)$662.1B
#2Toyota$247.0B
#3Volkswagen$149.9B
#4BYD$102.1B
#5Daimler$96.9B
#6General Motors (Read more...)

How Much Does Big Tech Make Every Minute?


This post is by Aran Ali from Visual Capitalist


big tech revenue per minute

Can I share this graphic?
Yes. Visualizations are free to share and post in their original form across the web—even for publishers. Please link back to this page and attribute Visual Capitalist.
When do I need a license?
Licenses are required for some commercial uses, translations, or layout modifications. You can even whitelabel our visualizations. Explore your options.
Interested in this piece?
Click here to license this visualization.

The Briefing

  • The FAATMAN stocks have a collective market cap of $8.3 trillion
  • On average, these Big Tech companies generate a whopping $416,768 of revenue each minute

Big Tech Just Keeps Getting Bigger

It’s becoming increasingly difficult to wrap your head around just how massive some big tech stocks are getting, especially since they keep outdoing themselves.

The pandemic has pushed even more activity online, and the FAATMAN stocks (Facebook, Amazon, Apple, Tesla, Microsoft, Alphabet, and Netflix) have benefited immensely.

With many of these companies experiencing record breaking quarters, how much revenue do the big tech stocks generate per minute?

CompanyRevenue Per MinuteMarket Cap ($B)
Amazon$955,517$1,560
Apple$848,090$2,040
Alphabet (Google)$433,014$1,370
Microsoft$327,823$1,750
Facebook$213,628$733
Tesla$81,766$648
Netflix$50,566$238

Data as of March 2021. Revenue per minute figures based off SEC filings, and market caps from Seeking Alpha.

Milestones Across The Board

Facebook

Facebook continues to face considerable headwinds as privacy matters garner more political attention. But this is yet to have any material effect on (Read more...)

Foresite Capital raises $969 million fund to invest in healthcare startups across all stages of growth



Health and life science specialist investment firm Foresite Capital has raised a new fund, its fifth to date, totally $969 million in commitments from LPs. This is the firm’s largest fund to date, and was oversubscribed relative to its original target according to fund CEO and founder Dr. Jim Tananbaum, who told me that while the fundraising process started out slow in the early months of the pandemic, it gained steam quickly starting around last fall and ultimately exceeded expectations.

This latest fund actually makes up two separate investment vehicles, Foresite Capital Fund V, and Foresite Capital Opportunity Fund V, but Tananbaum says that the money will be used to fuel investments in line with its existing approach, which includes companies ranging from early- to late-stage, and everything in between. Foresite’s approach is designed to help it be uniquely positioned to shepherd companies from founding (they also have a company-building incubator) all the way to public market exit – and even beyond. Tananbaum said that they’re also very interested in coming in later to startups they have have missed out on at earlier stages of their growth, however.

Image Credits: Foresite Capital

“We can also come into a later situation that’s competitive with a number of hedge funds, and bring something unique to the table, because we have all these value added resources that we used to start companies,” Tananbaum said. “So we have a competitive advantage for later stage deals, and we have a competitive advantage for early stage (Read more...)