By
Godfrey Benjamin
April 18th, 2024
Several Twitter users have been mulling of a change in the elite tech group’s name. Some users have also proposed introducing Tesla and Microsoft to this group. Netflix could be dropped.
Last week, Facebook Inc (NASDAQ: FB) announced a complete rebranding of the company adopting a new name Meta. This comes as the social media giant pushes towards building the “metaverse,” a shared virtual world. As this happens, Twitterati goes crazy about rebranding the FAANG group to MAANG. FAANG is the popular acronym for the five biggest American tech companies comprising Facebook, Amazon.com Inc (NASDAQ: AMZN), Apple Inc (NASDAQ: AAPL), Netflix Inc (NASDAQ: NFLX), and Google LLC (NASDAQ: GOOGL). As of date, the elite FAANG group has a combined market cap of $7.416 trillion this year. This is nearly 25% higher than the $5.8 trillion last year.
Will FAANG Become MAANG?
One of the most common suggestions from Twitter users is renaming FAANG to MAANG. However, some Twitter users have also proposed reshuffling this group to include Microsoft. The tech giant is now working its way to displacing Apple as the most valuable company by market cap.
Besides, there’s also been a clamor to add automobile giant Tesla to the list. Last week, the electric carmaker recently entered the trillion-dollar club. But this could come at the cost of Netflix leaving the group since it has the smallest market cap at $299 billion.
A Group of New Tech Giants
One of the proposed ideas to reshuffle the name was MAMATA. This would consist of Microsoft Corp (NASDAQ: MSFT), Apple, Meta, Amazon, Tesla Inc (NASDAQ: TSLA) and Alphabet. Together, these companies will peg a valuation of $10 trillion.
More importantly, they will contribute to 25% of the weight in the S&P 500 as opposed to 20% weight of the existing FAANG Group. Speaking of this development, Tom Hayes, managing member at Great Hill Capital in New York told Reuters:
“These handful of stocks (FAANG) have reigned for quite some time, and it may be with the beginning of taper, rates slowly rising and inflation… that these tech long duration assets may become less valuable”.
Facebook’s recent move has got analysts rethinking about what’s in store coming ahead from the social media giant. At the company’s annual Connect conference last Thursday, Mark Zuckerberg said:
“Over time, I hope that we are seen as a metaverse company. I want to anchor our work and our identity on what we’re building towards.”
Although Facebook will continue to retain its name, the stock will change its ticker from FB to MVRS.