FAMGA(a.k.a. Facebook, Apple, Microsoft, Google & Amazon)

“The Profound Implications of Five Increasingly Dominant Tech Companies”

June 7, 2017

Tech Dominates Market Cap Leaders

The Top 5 In Tech Dominate Tech

As of 6//17

FAMGA Is Increasingly Dominant

FAMGA Is 58%+ Of S&P 500 Performance YTD

FAMGA Is Increasingly Dominating Their

Core Markets

FAMGA Captured Almost All The Growth In Internet Advertising in 2016

FAMGA Captured The Majority of Growth in E-Commerce in 2016

Industries Increasingly Dominated By 1-2

Companies See Innovation (VC Funding) Decrease

Innovation Is Decreasing In AdTech

Innovation Is Decreasing In E-Commerce

FAMGA Is Increasingly Dominating Adjacent

Markets

FAMGA Increasingly Dominates The Cloud

Will FAMGA Continue To Grow It’s

Domination?

Nothing Is Constant But Change…

Is It Different This Time?

• Founded December, 2015 – By Elon Musk and Sam Altman

• Mission: “To build safe AGI, and ensure AGI's benefits are as widely and evenly distributed as possible.”

• Other Sponsors: Reid Hoffman, Peter Thiel, Amazon Web Services, Microsoft…

The AI/Mobile Analogy

FAMGA AI PatentsAs of 12/12/16

Total AI Patents Held1. IBM – 8252. Microsoft – 4633. Google – 1694. Hitachi – 1345. HP – 1276. Sony – 1237. Fujitsu – 113Source: IBM, Nov. 2016

AI VC Is Largely In Vertical Applications

Data & AI Are The Ying &Yang of Future Business Success

In A World Driven By AI & DataIs Every Market An Adjacent Market?

As AI & Data are increasingly the dominant factors driving winners and losers, the lines between

industries will fade

Five Most Used Apps1. Alarm clock 2. Music player3. News reader4. Control lights5. Add item to shopping list

The Fading of Industry Lines

Five Other Popular Skills 1. Pregnancy Center - Baby Center 2. Bartender - Plyon AI3. Fitbit – Sleep, Resting heart rate4. Stock Exchange – Gobby Apps 5. TV Guide – Gobby Apps

RBC Estimates 128 million installed based in 2020

What Can

Slow/Stop

FAMGA?

Will Anti-Trust Rules Slow/Stop FAMGA

• U.S. – anti-trust laws based on hurting of consumers, and consumers don’t’ appear to be being hurt

• European Commission –anti-trust based on hurting competition, which appears to be happening.

WeChat, Not Apple, Controls ChinaOnly 50% China Renewal vs. 80% ROW

Neuralink is developing an ultra high bandwidth brain-machine interface to connect humans and computers.

Neuralink – WaitButWhy.comTim Urban

“If everything you need to know about the brain is a mile long, we’ve walked about three inches.” – Dr. Jeffrey Lichtman, Harvard

“If the human brain were so simple that we could understand it, we would be so simple that we couldn’t.” – Dr. Moran Cerf, Northwestern

FAMGA Google Images Search Results

FAMGA Google Image Search Results

FAMGA