How Relevant Are Acronyms Today

How Relevant Are Acronyms Today

What is common to the below acronyms?

#BRICS – Brazil, Russia, India, China, South Africa

#FAANG – Meta, Apple, Amazon, Netflix, Google

#FANGMANT – Facebook, Apple, Netflix, Google, Microsoft, Amazon, NVIDIA, Tesla

#BAT – Baidu, Inc., Alibaba Group, Tencent

Marketers coined the above acronyms to capture a trend. This hype worked for a while but eventually crumbled due to the deterioration of fundamentals.

In the case of BRICS, the decline in commodity prices affected Brazil /South Africa, and with sanctions, Russia has withered away, thus making the entire acronym irrelevant.

After Chinese regulators cracked on the tech sector, BAT stocks declined.

With the tightening of monetary conditions, FAANG stocks have received a beating. Thus, FAANG stocks responsible for the significant gains in the US stock market last year are the culprits in the current market decline.

When the market expectations have changed from growth at any cost to generating free cash flows, tech companies except Apple find it challenging to justify their growing valuations.

For the last 30 years, only Microsoft, Walmart, and GE have been listed in the top 10 firms for two decades, whereas China and the US are successful economies by GDP.

Marketers/economists who coin acronyms by grouping different companies/countries and glorifying them are most vulnerable when the markets churn.