Only two of the FAANG companies get most of their revenue from ads, and all of those companies are weathering the storm rather well (except perhaps Google, but I can’t say for certain).
Facebook is struggling to keep up with site demand; more people are using it to communicate while shut in during this period of uncertainty.
Apple has enough cash on hand to not sell a single product for months - maybe years - and still keep paying everyone. But they have plenty of subscription-based revenue coming in anyway.
Amazon can barely keep up with demand to the extent that they are hiring 100,000 people and denying shipments of nonessential goods. (disclaimer: I work for AWS but have no inside information here; I read the same news stories everyone else does.)
Netflix is entertaining more people than ever who are stuck at home.
Google is, well, Google, and like Apple, awash in cash.
It’s not the FAANG companies we need to worry about; it’s the startups that were based on great ideas but needed the space and investment to incubate them but are now rapidly being depleted of oxygen.
While it is true that the marketing budget is often the first to go in terms of spend, FB is also awash in cash ($35B at EOY 2019) to keep them afloat for quite a while.
Facebook is struggling to keep up with site demand; more people are using it to communicate while shut in during this period of uncertainty.
Apple has enough cash on hand to not sell a single product for months - maybe years - and still keep paying everyone. But they have plenty of subscription-based revenue coming in anyway.
Amazon can barely keep up with demand to the extent that they are hiring 100,000 people and denying shipments of nonessential goods. (disclaimer: I work for AWS but have no inside information here; I read the same news stories everyone else does.)
Netflix is entertaining more people than ever who are stuck at home.
Google is, well, Google, and like Apple, awash in cash.
It’s not the FAANG companies we need to worry about; it’s the startups that were based on great ideas but needed the space and investment to incubate them but are now rapidly being depleted of oxygen.