Trust in Tech Giants: An Investor's Perspective on FAANG

As an investor, evaluating the trustworthiness of tech giants like the FAANG (Facebook, Apple, Amazon, Netflix, and Google) companies is essential. In this article, I will explore why different companies hold varying levels of trust among investors and discuss my personal stance on these tech giants.

Ranking of Trustworthiness Among FAANG Companies

Here is my ranking of the FAANG companies from least to most trusted:

Microsoft is the most trusted tech giant among the FAANG companies, while Facebook is often not trusted by many. My perspective is rooted in the transparency and business practices of each company, which greatly influence investor trust.

Investor Trust in Amazon

As an investor, I trust Amazon the most with my invested money. Amazon's commitment to building a resilient and successful business is commendable. The company consistently demonstrates integrity and strives for excellence in its operations. Investors like me are confident in Amazon's ability to navigate the evolving market and deliver sustainable growth.

Trust in Facebook

I trust Facebook the least due to several reasons. The company's lack of transparency and the inability to be legally bound to accountability due to Zuckerberg's significant stake pose significant concerns. Facebook has a history of using misleading information, such as the claimed size of its user base. For instance, during its initial public offering (IPO), the company admitted to not deleting all the fake accounts, which were reportedly paid for by the number of claimed users. This practice raised questions about the integrity of the company's data and the accuracy of its metrics.

Moreover, Facebook faced legal pressure regarding Russian troll farms and admitted to deleting 528 million fake accounts in the first three months of the year. This admission raises doubts about the company's inability to maintain transparency and honesty in reporting its user base. Given that Facebook already found 528 million fake accounts, it is reasonable to conclude that there are likely many more unaccounted-for fake accounts.

Another concerning factor is Facebook's handling of content. Users are unpaid digital sharecroppers, providing content that is then monetized through data marketing and advertising. Facebook is not legally responsible for the content on its platform, and this lack of accountability extends to issues like fake news and misinformation, protected under anti-libel laws for media companies.

Trust in Apple

Apple is the most trusted company among the FAANG, primarily because it is a hardware company with strict guidelines regarding privacy. Unlike Facebook, Apple does not rely heavily on advertising as a source of income. Apple's commitment to privacy and its strong reputation in the tech industry contribute to its high level of trust among investors. This focus on privacy and user data security has led to consistent investor confidence in the company.

Conclusion

The trustworthiness of tech giants like the FAANG companies varies based on factors such as transparency, business practices, and accountability. As an investor, it is crucial to consider these aspects when making investment decisions. While Microsoft leads in trust, Facebook lags due to its opaque practices and misleading data, and Apple remains a preferred choice for its strong reliability and commitment to privacy.