MATANA, which consists of Microsoft, Apple, Tesla, Alphabet, Nvidia, and Amazon has taken over the FAANGs.
The FAANG stocks, which stand for Facebook, Apple, Amazon, Netflix, and Google, have dominated the market as the leaders of the large capital digital giants. However, with Facebook and Netflix both experiencing sharp drops in year-over-year subscriber growth, their valuations have suffered in addition to the macroeconomic factors of rising interest rates and international unrest.
Hebrew meaning for “MATANA” is “gift,” hence switching to quality stocks is crucial. Investors look for digital giants that have annual revenue per user growth(ARPU) that has doubled year over year. This portfolio of equities is a never-ending gift. The large capital shocks that have demonstrated this stability in earnings and market dominance year over the year include Microsoft, Apple, Tesla, Alphabet, Nvidia, and Amazon (MATANA). Tech stocks are not all created equal. Significant challenges for the tech industry include rising interest rates, a tighter Fed, Russia and Ukraine, and international regulatory onslaughts on tech companies. Given the macroclimate, digital behemoths will continue to fare better than most industries. Knowing which major tech categories will endure the current big tech winter is necessary for this move to quality.
When Jim Cramer of CNBC’s “Mad Money” first used the phrase FAANG in 2013, several of those businesses were viewed as upstarts that had completely disrupted their respective marketplaces. This was notably true with Netflix and Meta, which was then Facebook. Wang said that both should now be reevaluated. Particularly Meta requires a new strategy. He told Yahoo Finance, “Facebook has got to do something besides ads.” “They’re getting punished once more for it. Will the spectacles be the cause, then? Is the metaverse going to be involved? The problem actually is that we aren’t there yet, and that’s kind of the dilemma.” For Netflix, it’s an issue of expansion, and what is and isn’t on the table. And because of the company’s functioning on a subscription model, Wang has reservations about how much further they may go. “How many more subscribers is the cause of their departure? How many more subscriptions can you manage?” said he. “Product placement and IP licensing should be possible where they are. Consider how Disney generates revenue.” Microsoft, which is frequently regarded as one of the top legacy names in technology, should be included in the group of the industry’s most elite leaders, according to Wang. Microsoft offers more than simply consumer and business-to-business services. Both have been controlled by them. They are in a good position for the metaverse. They are in a good position for the cloud. Of course, they also run a gaming company.
Up to two-thirds of the value of the FAANG companies—Facebook, Amazon, Apple, Netflix, and Alphabet, the parent company of Google—have been lost since 2022.
With a loss of roughly 68% since January 1, Netflix is at the top of the list of wealth destroyers. Next is Facebook, now called Meta, which saw a decrease of more than 40% in 2022.
Since the start of the current year, Jeff Bezos’ Amazon has also fallen by almost a third. Apple and Alphabet, the other two, have each decreased by up to 20%.
Excessive valuations, rising interest rates brought on by a jump in inflation, and the geopolitical turmoil, according to market experts, is weighing on the investor mood.
High inflation and the Fed’s indication that it will raise interest rates moving forward have also made it likely that these stocks’ growth will stay sluggish in the near term.
Market analysts, however, stated that it is too soon to dismiss them and determine if they are a good investment. The switch to excellent stocks is crucial because, in Hebrew, MONTANA means gift. Investors are looking for digital juggernauts that have double-digit year-over-year growth and rising revenue per user (ARPU). The gifts that keep on giving are these stocks. The large capital surprises with this consistency in year-over-year financial performance and market dominance include Microsoft, Apple, Tesla, Alphabet, Nvidia, and Amazon (MATANA).