Ray Wang, Principal Analyst of Constellation Research, believes that due to market changes, FAANG should be replaced by MATANA in the stock ranking.
In the ever-changing world of technology, the dominance of FAANG – Facebook Inc, now Meta Platforms Inc (NASDAQ: META), Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX ), and Google alongside its parent company Alphabet Inc (NASDAQ: GOOGL) — has been indisputable. However, as the sector evolves, some experts suggest that there is a need to rethink the hierarchy and place a new range at the top even before the previously offered MANTA actions. In a reportPrincipal analyst and Constellation Research founder Ray Wang recently proposed a revamped lineup known as MATANA – an acronym that presupposes the exclusion of Meta and Netflix stocks from FAANG while adding Microsoft Corporation (NASDAQ: MSFT), Tesla Inc (NASDAQ: TSLA) and Nvidia Corp (NASDAQ: NVDA).
CNBC’s “Mad Money” anchor Jim Cramer coined the phrase “FAANG” also known as “MAANG” to refer to tech giants Meta Platforms, Apple, Amazon, Netflix and Google in 2013. At the time, these companies were considered disruptive startups. that had transformed their respective markets.
However, Wang now thinks it’s time to reassess Meta and Netflix’s position within the Big Tech ecosystem. Wang argues that both companies need a new perspective and, in particular, Meta needs a new plan to regain its competitive edge.
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 strategy, in which customers pay a monthly fee to access a huge library of content.
However, Wang worries that as the streaming scene becomes more saturated, Netflix will struggle to sustain subscriber growth. He therefore suggests that exploring alternative revenue streams, such as product placement and intellectual property (IP) licensing, could be crucial to Netflix’s long-term success.
In the case of Meta, Wang says the company’s reliance on ad revenue has created fundamental growth constraints. He pointed out that Meta needed to diversify its revenue streams to ensure sustainable growth and address the negative sentiment associated with its advertising-driven approach.
Wang’s case for Microsoft, Tesla and Nvidia
Additionally, Wang makes the case for Microsoft. He established that Microsoft’s diverse portfolio and strategic positioning in critical areas such as metaverse, cloud computing and gaming place it among the most important companies in the industry.
While gathering the group, Wang revealed that Tesla and Nvidia have emerged as major contenders worthy of inclusion in the elite group of tech powerhouses.
Notably, Tesla’s groundbreaking advances in battery technology, self-driving capabilities, and the network of Supercharger stations have set new industry standards. The company’s relentless pursuit of innovation has made electric vehicles increasingly accessible and desirable to a wider consumer base.
Likewise, Wang points out that Nvidia’s impact extends far beyond its physical products. He reiterated that the company’s positioning as a leader at the forefront of AI, the metaverse and the future of computing puts it at the forefront of transformative technologies.
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