The tech giants known as FAANG (Facebook, Apple, Amazon, Netflix, and Google) have transformed industries, our lives, and stock markets. But how do they really perform financially? Today, we’ll take a closer look at their balance sheets and growth strategies to understand their strengths, challenges, and future potential.

When we talk about FAANG companies, we’re discussing more than just massive revenues or shiny product launches. These are businesses that dominate multiple sectors, ranging from e-commerce and streaming to digital advertising and artificial intelligence. They’ve proven their ability to innovate while expanding into new markets, which makes them industry leaders and investor darlings alike. But what specific financial metrics and strategies set them apart?

For starters, FAANG companies are renowned for their massive market valuations, often reaching trillions of dollars. Each has carved out a powerful niche while diversifying their revenue streams. For example, Facebook (now Meta) thrives on ad revenue, while Amazon has a robust e-commerce backbone supported by its cash-cow Amazon Web Services (AWS). Their balance sheets aren’t just about big numbers; they’re blueprints for sustained growth.

Meta has made a big shift in recent years, moving its focus from social media to the metaverse. While its main platforms, Facebook, Instagram, and WhatsApp, are still massive moneymakers through ads, the company is investing billions into augmented and virtual reality projects under its Reality Labs division.

This strategy has been a mixed bag financially. On one side, the ad business keeps bringing in solid revenue and makes up most of Meta’s income. On the other side, all those metaverse investments have driven up costs without delivering much in terms of financial returns, at least not yet. Investors are split on whether this bold move will pay off in the long run or chip away at Meta’s profitability.

Apple, probably the most profitable member of the FAANG group, has nailed the game with high-margin hardware and services. iPhones are still top of the line, raking in the bulk of their revenue every year. But the real magic is in Apple’s ecosystem—think AirPods, Apple Music, and iCloud, all working together seamlessly.

With a gross margin that often puts its peers to shame, Apple’s financial stability is virtually unrivaled. Recent shifts toward subscription services and financial products (like the Apple Card and Apple Pay) show that the company isn’t resting on its hardware laurels. Apple has also built one of the largest cash reserves, which allows it to weather economic downturns and reward investors with consistent stock buybacks and dividends.

Amazon’s financial performance highlights its success at scale. While its e-commerce platform is the most recognized aspect of the business, generating billions in annual revenue, the primary driver of profitability is Amazon Web Services (AWS), its cloud computing division. Not only is AWS highly profitable, but it also plays a crucial role in funding the company’s broader initiatives.

Amazon’s vast scale is accompanied by significant operating costs. Its logistics, fulfillment centers, and delivery infrastructure demand substantial investments, and the company frequently operates with narrow margins in its retail segment. Nevertheless, Amazon’s strategic reinvestment of earnings into growth opportunities ensures it remains a leader in innovation.

Netflix pretty much kicked off the streaming era and spent years as the top choice for on-demand entertainment. Its subscription model has kept the money coming in, but with big players like Disney+ and HBO Max in the game, staying on top has become more of a challenge.

Despite the competition, Netflix hasn’t backed down. It’s expanded into new markets, invested heavily in original content, and tested alternative revenue streams, such as ad-supported subscription tiers. While earnings growth has slowed compared to the company’s golden years, Netflix remains a formidable player in the entertainment business.

Google, now operating under parent company Alphabet, has built one of the most lucrative business models in the world. Its core search engine dominates online advertising, bringing in tens of billions of dollars every quarter. Add to that the success of services like YouTube, Google Cloud, and the Android ecosystem, and you have a company firing on all cylinders.

But Alphabet isn’t just about ads and search. It regularly invests in ambitious “moonshot” projects, including Waymo’s self-driving cars and healthcare initiatives such as Verily. While these ventures sometimes run at a loss, they underline Google’s commitment to staying on the cutting edge of innovation.

The financial performance of the FAANG giants is all about big numbers, smart risks, and future-focused strategies. Sure, they’ve hit some bumps along the way, but these companies have a way of tackling challenges and setting new standards in their industries. Whether you’re investing or just interested in tech, keeping tabs on these powerhouses is always a smart move.