Ray Wang, principal analyst at Constellation Research, believes FAANG should be replaced by MATANA in stock rankings due to market changes.
FAANG’s Advantage in an Evolving World of Technology – Facebook Inc, now Meta Platforms Inc (NASDAQ: META), Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX) ), and Google alongside parent company Alphabet Inc (NASDAQ:GOOGL) is no doubt. However, as the sector evolves, some experts suggest the hierarchy needs to be reconsidered and new lineups placed on top before previously proposed MANTA stocks.and reportLei Wang, principal analyst and founder of Constellation Research, recently proposed a revamped line-up known as MATANA. This removes Meta and Netflix shares from FAANG, Microsoft (Nasdaq: MSFT), Tesla (Nasdaq: TSLA) and NVIDIA (NASDAQ: NVDA).
CNBC’s “Mad Money” anchor Jim Cramer coined the word “FAANG” (aka “MAANG”) in 2013 to refer to the tech giants Meta Platform, Apple, Amazon, Netflix and Google. . At the time, these companies were considered disruptive startups. We transformed our respective markets.
But Wang now believes it’s time to reassess meta and Netflix’s place within the big tech ecosystem. Both companies need new perspectives, Wang said, and Meta in particular 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. In particular, his Netflix success in the media and entertainment industry is based on a subscription-based strategy where customers pay a monthly fee to access its vast content library.
But Wang worries that Netflix will have a harder time sustaining subscriber growth as the streaming scene becomes saturated. As such, he suggests that exploring alternative revenue streams such as product placement and intellectual property (IP) licensing could be key to Netflix’s long-term success.
In the Meta example, Wang argues that the company’s reliance on advertising revenue creates a fundamental growth constraint. He stressed that Meta needs to diversify its revenue streams to ensure sustainable growth and address the negative sentiment that comes with its ad-centric approach.
Mr. Wang’s arguments in favor of Microsoft, Tesla and Nvidia
Additionally, Mr. Wang argues in favor of Microsoft. He said the diversification of Microsoft’s portfolio and strategic positioning in key areas such as the Metaverse, the Cloud and his computing and gaming have established the company as one of the most important companies in the industry. bottom.
In summarizing the grouping, Wang made it clear that Tesla and Nvidia have emerged as prime candidates to join the elite group of tech powerhouses.
In particular, Tesla’s revolutionary advances in battery technology, self-driving capabilities and a 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.
Similarly, Wang emphasizes that Nvidia’s influence extends far beyond physical products. He reiterated that the company’s position as a leader in the future of AI, the metaverse and computing puts the company at the forefront of transformative technology.
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