The new face of big tech stocks should be MATANA and not FAANG, said Principal Analyst and the Founder of Constellation Research, Ray Wang, in a video interview with Yahoo Finance Live. MATANA is the abbreviation of Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), and Alphabet (formerly Google) (NASDAQ:GOOGL).
For years, the FAANG fraternity represented big tech players that included Meta Platforms (earlier Facebook) (NASDAQ:META), Apple, Amazon, Netflix (NASDAQ:NFLX), and Google. Wang suggests dropping Meta Platforms and Netflix from the list and adding Microsoft, Tesla, and Nvidia to the group.
The analyst’s comments have come amid the underperformance of these mega-cap stocks in 2022. Not only this, the fact that Netflix and Meta are struggling more than the others to stay relevant to their stakeholders may have somewhat shaken Wang’s trust, triggering his suggestion to drop them from the FAANG list.
Notably, heightened competition is taking its toll on Netflix’s and Meta’s businesses. Further, the pullback in ad spending and regulatory concerns (primarily for Meta) remains a drag.