If you are a citizen of the 21st century, you have probably heard of FAANG, the world’s 5 biggest companies that are running our modern-day tech industry, or as folks call it – Big Tech. FAANG is an abbreviation for Facebook (now rebranded as Meta), Apple, Amazon, Netflix, and Google.
However, a recent report this week seems to indicate that FAANG is no longer relevant in today’s market and that today, Big Tech is now spearheaded by 6 new leading tech giants that make up MATANA, and they are Microsoft, Amazon, Tesla, Apple, Nvidia, and Alphabet (the parent company of Google).
In a recent video interview with Yahoo Finance Live, Constellation Research Principal Analyst & Founder Ray Wang states that the FAANG abbreviation should be reassessed as it no longer reflects the current market trends.
In the interview, Wang debates that MATANA is an upgrade from FAANG as the new abbreviation added Microsoft, Tesla, and Nvidia into the Big Tech lineup whilst dropping Facebook and Netflix from the list altogether.
The main reason behind the current market trend is because of both Facebook and Netflix are facing fierce competition from their industry rivals, whilst facing backlash from their audiences as well as regulations from governing bodies worldwide.
On the topic of Meta, Yahoo Finance quotes Wang, “Facebook has got to do something besides ads.” “Once again, they’re taking a beating for it. So, is it going to be the glasses? Is it going to be the metaverse? We’re not there yet and that’s really kind of what the challenge is.”
As for Netflix, Wang comments, “The reason they’re out is because, how many more subscribers? How many more subscriptions are you going to handle?” “Product placement should be where they are, plus the ability to do IP licensing. Look at how Disney makes its money.”
Thus, it seems as if the days of Meta and Netflix as market leaders in the industry are numbered, and unless both companies provide new and innovative products in the markets fast, they may end up the likes of Nokia, Blackberry, and other once globally dominant technology brands.
Coming to Microsoft and Nvidia, the analyst had several insights to share about them. To quote Wang via Yahoo Finance:
“Microsoft has more than just business-to-business and consumer – they’ve been able to manage both,” he said. “They’re positioned well for the metaverse. They’re positioned well for the cloud and, of course, they’ve got their gaming business.”
“Nvidia is a lot more than just the chips that we look at and more than the data center or gaming,” Wang said. “They’re sitting at the edge between AI, the metaverse, the future of computing, and the way they do their partnerships, they’re set up in a way that’s going to be dominant for quite some time.”
As for Tesla, people had already heard the story of Elon Musk many times, and that he is now the world’s wealthiest man on Earth. And despite the current negative press on Tesla cars, the company sales are still growing and projected to grow further as the world switches away from petrol and gas vehicles to the more environmentally friendly electrical vehicle alternative.
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(Source)
