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New acronym on Wall Street: MATANA is the new FAANG

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The FAANG have passed to a better life in the importance of the great technology companies. Ray Wang, principal analyst and founder of Constellation Research, has pointed out that the new acronym is MATANA according to Alexandra Garfinkle at Yahoo Finance.

MATANA is made up of Microsoft, Apple, Tesla, Alphabet-A, NVIDIA, and Amazon. This FAANG update removes Meta (Facebook) and Netflix, while adding Microsoft, Tesla, and Nvidia.

Back in 2013, when Jim Cramer of CNBC’s “Mad Money” coined the term FAANG, many of those companies were thought to be upstarts that had conquered their respective markets. This was especially true for Meta and Netflix. But now, Wang said, both need to be reassessed. Meta, in particular, needs a new plan.

“Facebook has to do something other than ads,” Wang told Yahoo Finance. “Once again, they’re taking a beating for that. So is it going to be the glasses? Is it going to be the metaverse? We’re not quite there yet and that’s really the challenge.”

For Netflix it is a question of growth, and what is and is not on the table. And because the company operates on a subscription model, Wang has questions about how much more they could get.

“The reason they’re out is because how many more subscribers? How many more subscriptions are you going to handle?” Wang added. “Product placement needs to be where they are, along with the ability to license intellectual property. Look how Disney makes their money.”

Wang stressed that Microsoft, which is often considered one of the biggest legacy names in tech, should be included in the group of the most elite leaders in tech (and sometimes has been with the bulky acronym FAAMNG).

“Microsoft has more than just business-to-business and consumer — they’ve been able to manage both. They’re well-positioned for the metaverse. They’re well-positioned for the cloud, and of course they have their gaming business,” Wang said.

Rounding out the new grouping would be Tesla, a well-known success story at the moment, and Nvidia.

“Nvidia is much more than the chips we look at and more than the data center or gaming,” Wang said. “They are sitting on the border between AI, the metaverse, the future of computing, and how they do their business. associations, they’re configured in a way that’s going to be dominant for quite some time.”

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