According to reports, Ray Wang, chief analyst and founder of investment firm Constellation Research, said in an interview with the media that it is time to redefine the top companies in the food chain of technology giants.
Ray Wang believes that FAANG should be replaced by MATANA. MATANA is an acronym for Microsoft, Apple, Tesla, Alphabet, Nvidia, and Amazon. After this adjustment, the original Meta and Netflix were removed, and Microsoft, Tesla, and Nvidia were added.
When U.S. financial commentator Jim Cramer coined the term FAANG in 2013, many of the companies included were seen as rising stars in the industry, representing the five most popular and top-performing tech stocks in the U.S. market, which are expected to take their respective markets by storm. This was especially true of Meta (then called Facebook) and Netflix. But Ray Wang believes it's time to reassess the situation for both companies. Meta in particular needs to develop new plans.
"Facebook has to find new models outside of advertising," he said. "They're getting hit with it again. So, will the new business be glasses? Will it be the Metaverse? It's not clear yet, and that's where the challenge lies. "
The problem with Netflix is its growth prospects and the resources it has and lacks. Since the company uses a subscription model, Ray Wang has questions about its future potential.
"The reason they're out is, how many subscribers are there? How many more subscriptions can you handle?" he said. "They should be doing ad placements and licensing IP. Look how Disney makes money."
Ray Wang emphasized that Microsoft is often seen as the best among established tech companies, but he should also be included among the top tech leaders. In fact, the former FAANG is often written as FAAMNG, where M is Microsoft.
"Microsoft doesn't just do B2B business and consumer business, they can be successful in both," he said. "They're well positioned in the metaverse, and they're well positioned in cloud computing. Of course, they have a gaming business."
Tesla and Nvidia are two newcomers. Tesla is well known today as the pioneer of electric vehicles.
"NVIDIA does not just chip, it's not just data centers or games," said Ray Wang. "They're still on the edge of AI, the metaverse, future computing, and their converged models, and the way they're going will be for quite some time. dominate."
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