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It’s time to break up the FAANG – most are no longer tech

(TECH NEWS) The majority of Americans have missed the evolution of FAANG companies away from tech – they’re now media.

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Social media companies don’t want to be called “media” because the rules are different, but we have defined them in full to make it clear that several companies that started out as tech are now firmly in the media category.

Any company whose primary function is serving up content is a media company.

Any company whose primary function is hardware or software is a tech company.

Facebook, Apple, Amazon, Netflix, Google are referred to in one lump as the “FAANG,” particularly when discussing stocks. Companies in the FAANG grouping are blurring the lines between the tech and media categories despite their determination to remain tech-based organizations.

Why the desperation to be considered tech and not media? One word: regulations.

Media companies are held to a different standard because they are responsible for the content they create and distribute. However, FAANG companies that were founded to create/sell technologies and platforms are taking society into new territories indistinguishable between platform and content creation.

Whenever these companies make the tiniest movement, we all move with them whether we like it or not.

While FAANG companies may not be officially held to media company standards, it is up to analysts, talking heads on tv, Wall Street, and the public to reconsider what’s tech and what’s media.

One way we can make this distinction is how we treat FAANG stocks (and whether or not the acronym survives much longer).

One plaguing question is – if FAANG companies are slipping into areas of content creation and media, are their investors being misled?

The most prime example is Facebook. The past two years have shown us there is federal and international interest in regulation discussion after the issues of privacy and fake news. We’re feeling the consequences of social media, and whether or not judiciary bodies take action, Facebook will be forced to take a good hard look at itself. And where will this leave investors in the long-term?

Apple is, by definition, a tech company. No question.

Amazon is no media company, and while some may argue their primary function is retail (despite offering AWS, Echo, etc.), we would still classify them as tech.

Netflix is quite clearly a media company, a platform that serves up content (a glorified cable network only available off of cable).

Google ranks content based on an algorithm and decides what is most relevant and important to you, which is another way of saying they serve content. Alphabet is a tech company (for now), but just Google, the search engine, is not.

The FAANG stocks are based in strong ecosystems. They’ve grown exponentially in one or two decades. Are we going to overestimate their relevancy in the next 5-10 years? Is it possible that, in the future, FAANG investors will have their money in very different versions of these companies? As the discourse shifts towards regulation, the investment risk shifts as well.

FAANG stocks certainly have their appeal—like being a invited to the global party. Perhaps investors and cable news analysts will continue riding the hype train. But like in technology and economics, certainty isn’t guaranteed. It is better to look ahead and hold ourselves accountable as we’d like/hope these tech giants will do on their own.

Staff Writer, Allison Yano is an artist and writer based in LA. She holds a BFA in Applied Visual Arts and Minor in Writing from Oregon State University, and an MFA in Fine Art from Pratt Institute. Her waking hours are filled with an insatiable love of storytelling, science, and soy lattes.

Tech News

Degree holders are shifting tech hubs and affordability

(TECH NEWS) Tech hubs are shifting as degree holders move, but it’s causing some other issues and raising some interesting questions about the future of jobs.

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Bloomberg recently announced their annual “Brain” Indexes. The indexes are an annual reckoning of STEM (Science, Technology, Engineering and Mathematics) jobs and degree holders. The “Brain Concentration Index” approximates the number of people working full time in computer, engineering, and science jobs (including math and architecture.) It measures the median earnings for people in those jobs. It also counts how many people have a bachelor’s degree in a STEM field, or an advanced degree of any kind. It blends those things together to determine how “brainy” a city is.

Since they started in 2016, Boulder, CO has been at the top of the list. This year it’s followed by San Jose, CA, which many people might expect to be at the top. Many of the more surprising cities, like Ann Arbor, MI, Ithaca, NY, and even Lawrence, KS, are bolstered by the presence of a strong university.

It’s an interesting methodology. It’s worth noting that anyone with an advanced degree, whether it’s an MBA, a law degree, or a Ph.D. in literature, contributes to which city is a “tech hub.” It’s also worth noting how expensive many of these places are to live.

If you follow this kind of national data collection at all, you may also know that Boulder is one of the least-affordable cities in the country. So is the San Jose/Sunnyvale/Santa Clara metro area, with a median home price of 1.25 million dollars and a median household income of $117,474. (That means that the average mortgage is more than half of the average paycheck). However many people tech hubs like San Jose and San Francisco attract, they’re also hemorrhaging talent. Every day, 8 Californians move to Austin. Of the people who stay, more than half are thinking of moving.

They aren’t doing that for fun. As much flak as Californians get for gentrifying places like Austin, they’re being megagentrified out of their own homes. As salaries rise and CEO gigs attract the wealthy (and turn them into the Uberwealthy), the people who wait on tables or teach their children can’t afford to stay there anymore.

Speaking of people leaving, Bloomberg also measured what they call “brain drain,” the flow of advanced degree holders out of cities. They pair that with a decline in white-collar jobs and a decline in STEM pay to come up with their annual list. It includes places like Lebanon, PA and Kahului, HI.

All in all, it’s interesting information. But there are other factors at work that it can’t speak to. What does wage stagnation in the U.S. mean for the flow of education workers? If San Jose and San Francisco can be tech hubs based on the number of people with degrees, but people are still fleeing, what does that say about rankings like these? What human stories get lost in the shuffle? And is “tech hub” even something a city wants to be if that means running out of teachers (or making them sleep in garages)? Where does the next generation of tech hub workers come from?

Knowing the people behind the numbers makes it clear just what a mixed bag this is. Maybe we need more tech hubs like Lawrence, Kansas. Or maybe we need rent control. Or maybe we need to embrace remote work. Maybe there are no answers. As interesting as data like this is, there’s something sort of wistful about it, too.

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Tech News

New Apple Watch is awesome, but past watches could be just as good for cheaper

(TECH NEWS) The Apple Watch Series 6 is a ridiculous display of self-flattery—but that doesn’t mean people won’t line up to buy it in droves.

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Apple Watch being worn on wrist showing weather for Montreal.

The Apple Watch has been the subject of everything from speculation to ridicule during its relatively short tenure on this planet. While most have nothing but praise for the most recent iteration, that praise comes at a cost: The Apple Watch’s ghost of Christmas past.

Or, to put it more literally, the fact that the Apple Watch’s prior version and accompanying variations are too good—and, at this point, too comparatively cheap—to warrant buying the most recent (and expensive) option.

Sure, the Apple Watch Series 6 has a bevy of health features—a sensor that can take an ECG and a blood oxygen test, to name a couple—but the Series 5 has almost everything else that makes the Apple Watch Series 6 “notable.” According to Gear Patrol, even the Series 4 is comparable if you don’t mind forgoing the option to have the Apple Watch’s screen on all of the time.

More pressingly, Gear Patrol points out, is the availability of discount options from Apple. The Apple Watch Series 3 and Apple Watch SE are, at this point, budget options that still do the job for smart watch enthusiasts.

Not to mention any Apple Watch can run updates can utilize Apple’s Fitness Plus subscription—another selling point that, despite its lucrative potential, doesn’t justify buying a $400 watch when a cheaper option is present.

It’s worth noting that Apple is no stranger to outdoing themselves retroactively. Every year, Apple’s “new” MacBook, iPhone, and iPad models are subjected to extensive benchmarking by every tech goatee around. And the conclusion is usually that buying a generation or two behind is fine—and, from a financial perspective, smart.

And yet, as the holidays roll around or the initial drop date of a new product arrives, Apple invariably goes through inventory like a tabby cat through unattended butter.

The Apple Watch is already a parody of itself, yet its immense popularity and subtle innovation has promoted it through several generations and a few spin-off iterations. And that’s not even including the massive Apple-specific watch band market that appears to have popped up as a result.

Say what you will about the Series 6; when the chips are on the table, my money’s on the consumers making the same decisions they always make.

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Microsoft acquires powerful AI language processor GPT-3, to what end?

(TECH NEWS) This powerful AI language processor sounds surprisingly human, and Microsoft has acquired rights to the code. How much should we worry?

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The newly-released GPT-3 is the most insane language model in the NLP (natural language processor) field of machine learning. Developed by OpenAI, GPT-3 can generate strikingly human-like text for a vast range of purposes like bots and advertising, to poetry and creative writing.

While GPT-3 is accessible to everyone, OpenAI has expressed concerns over using this AI tech for insidious purposes. For this reason, Microsoft’s new exclusive license on the GPT-3 language model may be a tad worrisome.

First of all, for those unfamiliar with the NPL field, software engineer, and Youtuber, Aaron Jack, provides a detailed overview of GPT-3’s capabilities and why everyone should be paying attention.

Microsoft’s deal with OpenAI should come as little surprise since OpenAI uses the Azure cloud platform to access enough information to train their models.

Microsoft chief technology officer Kevin Scott announced the deal on the company blog this week: “We see this as an incredible opportunity to expand our Azure-powered AI platform in a way that democratizes AI technology, enables new products, services and experiences, and increases the positive impact of AI at Scale,” said Scott.

“Our mission at Microsoft is to empower every person and every organization on the planet to achieve more, so we want to make sure that this AI platform is available to everyone – researchers, entrepreneurs, hobbyists, businesses – to empower their ambitions to create something new and interesting.”

OpenAI has assured that Microsoft’s exclusive license does not affect the general public’s access to the GPT-3 model. The difference is Microsoft will be able to use the source code to combine with their products.

While OpenAI needs Azure to train these models, handing over the source code to another party is, to put it mildly, tricky. With the earlier GPT-2 model, OpenAI initially refused publishing the research out of fear it could be used to generate fake news and propaganda.

Though the company found there was no evidence to suggest the GPT-2 was utilized this way and later released the information, handing the key of the exponentially more powerful iteration to one company will undoubtedly hold ramifications in the tech world.

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