Ray Wang, principal analyst at Constellation Research, believes that due to market changes, FAANG should be replaced by MATANA in the stock ranking.
In the ever-evolving world of tech, FAANG dominates – Facebook Inc, now Meta Platforms Inc (NASDAQ: META), Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX), and Google Inc. Together with parent company Alphabet Inc (NASDAQ: GOOGL) – they are indisputable. However, as the sector develops, some experts suggest that it is necessary to rethink the hierarchy and place a new lineup at the top even before the previously proposed MANTA shares. in a reportRay Wang, principal analyst and founder of Constellation Research, recently proposed a revamped lineup known as MATANA — an acronym that presupposes excluding FAANG’s Meta and Netflix stocks while adding Microsoft Corporation (NASDAQ:MSFT), Tesla Inc (NASDAQ:TSLA), and Nvidia Corp. (NASDAQ: NVDA).
Matana shares
CNBC’s Mad Money anchor Jim Cramer coined the phrase “FAANG” aka “MAANG” to designate tech giants Meta Platforms, Apple, Amazon, Netflix, and Google in 2013. At the time, these companies were seen as corporations. Troublesome startups that have transformed their own markets.
However, Wang now believes it is time to reassess Meta and Netflix’s position within the Big Tech ecosystem. Both companies require a fresh perspective, Wang argues, and in particular, Meta needs a new plan to regain its competitive advantage.
Wang argues that Netflix’s growth potential raises questions about the scalability of its subscription-based model. Notably, Netflix’s success in the media and entertainment industry is based on its subscription-based strategy, in which customers pay a monthly fee to access a huge library of content.
However, Wang is concerned that as the streaming landscape becomes more saturated, Netflix is having difficulties maintaining subscriber growth. Therefore, he suggests that exploring alternative sources of revenue, such as product publishing and intellectual property (IP) licensing, could be critical to Netflix’s long-term success.
In the case of Meta, Wang claims that the company’s reliance on advertising revenue created a fundamental constraint on growth. He highlighted that Meta needs to diversify its revenue sources to ensure sustainable growth and address negative sentiment associated with its advertising-focused approach.
Wang’s argument in favor of Microsoft, Tesla, and Nvidia
Moreover, Wang argues in favor of Microsoft. Microsoft’s diversified portfolio and strategic position in critical areas such as the metaverse, cloud computing, and gaming have proven to place it among the most important companies in the industry.
While assembling the group, Wang revealed that Tesla and Nvidia have emerged as major competitors worthy of inclusion in the elite group of tech powerhouses.
Notably, Tesla’s revolutionary advances in battery technology, self-driving capabilities, and Supercharger station network have set new industry standards. The company’s relentless pursuit of innovation has made electric vehicles more accessible and desirable to a broader consumer base.
Likewise, Wang asserts that Nvidia’s influence extends far beyond its physical products. He reaffirms that the company’s position as a leader on the edge of artificial intelligence, metaverse, and the future of computing places it at the forefront of transformative technologies.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications of blockchain technology and innovations to drive public acceptance and global integration of the emerging technology. His desires to educate people about cryptocurrencies have inspired his contributions to popular blockchain-based media and websites. Benjamin Godfrey is a fan of sports and farming.