FAANG is out of fashion? Analyst: Now it's MATANA, with Microsoft, Tesla and Nvidia
Beijing, September 6 morning news, according to reports, investment firm Constellation Research chief analyst and founder Ray Wang said in a media interview that it is time to redefine the top of the technology giant food chain.
According to the analyst, the previous FAANG should be replaced by MATANA, an acronym for Microsoft, Apple, Tesla, Alphabet, Nvidia and Amazon. The change removes Meta and Netflix and adds Microsoft, Tesla and Nvidia.
When U.S. financial commentator Jim Cramer coined the term FAANG in 2013, many of the companies selected were seen as rising stars in the industry, representing the acronyms of the five most popular and best-performing technology stocks in the U.S. market and expected to take their respective markets by storm. But analysts believe it's time to reassess both companies, and Meta in particular needs to develop a new plan.
"Facebook has to find a new model outside of advertising," he says. Once again, they're taking a hit because of it," he said. So, will the new business be eyewear? Will it be metaverse? It's not certain yet, and that's exactly where the challenge is."
The problem for Nifty is the growth prospects and the resources it has and lacks. Because the company uses a subscription model, analysts have questions about their future growth potential.
"The reason they're out is, how many more subscribers are there? How many more subscriptions can you handle?" He said, "They should be doing embedded advertising and also IP licensing. Look at how Disney makes money."
Ray Wang emphasized that Microsoft is often seen as the best of the old tech companies, but he should also be classified as one of the top tech leaders. In fact, FAANG was also often written FAAMNG, where the M is Microsoft.
"Microsoft doesn't just do B2B business and consumer business, they're able to be successful in both." He says, "They're well positioned in the metaverse and well positioned in the cloud. And, of course, they have the gaming business."
Tesla and Nvidia, on the other hand, are two new entrants. Tesla has been widely known today as a pioneer in electric cars.
"Nvidia is not just chips, and it's not just data centers or gaming." , "They are also on the edge of artificial intelligence, metaverse, future computing and its convergence model, and they are developing in a way that will dominate for quite some time."