What Are MANTA Stocks and How Are They Taking Over FAANG?

UTC by Beatrice Mastropietro · 6 min read
What Are MANTA Stocks and How Are They Taking Over FAANG?
Photo: Unsplash

MANTA is an acronym for Microsoft, Amazon, Nvidia, Tesla, and Alphabet (Google). They are taking over FAANG, and in this guide, you will find out how.

There is no question that the FAANG stocks have been on a tear in recent years. But there’s a new crop of stocks that are giving them a run for their money – and they are called MANTA stocks.

MANTA stands for Microsoft, Apple, Nvidia, Tesla, and Alphabet (Google’s parent company). And these stocks have been absolutely on top since the acronym was introduced. In 2021, Microsoft Corporation (NASDAQ: MSFT) stock was up nearly 50%, Apple Inc (NASDAQ: AAPL) was up over 60%, Nvidia (NASDAQ: NVDA) shares were up an astounding 120%, Tesla Inc (NASDAQ: TSLA) stock was up a whopping 400%, and Alphabet Inc (NASDAQ: GOOGL) shares were up almost 30%.

According to the veteran fund manager Mark Hawtin, the FAANG trade is dead. In 2022, the time has come for MANTA.

What Are MANTA Stocks?

MANTA is an acronym for Microsoft, Amazon, Nvidia, Tesla, and Alphabet (Google). These stocks have been on an absolute tear in recent years, and show no signs of slowing down.

Microsoft is the world’s largest software company and has a market cap of over $1 trillion as of 2022. It develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services. Its best-known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its hardware products include the Xbox game consoles and the Microsoft Surface lineup of touchscreen personal computers. The company also produces a wide range of other software for desktops and servers and is active in areas including Internet search (with Bing), the video game industry (with the Xbox platform), mixed reality (HoloLens), cloud computing (Azure), parallel computing (Bing Aurora).

Amazon.com Inc (NYSE: AMZN) is the world’s largest online retailer, one of the most influential economic and cultural forces in the world, as well as one of the most valuable brands. The tech giant is the largest Internet-based retailer in the world by total sales and market capitalization. Amazon.com started as an online bookstore, but soon diversified, selling DVDs, CDs, audiobooks, e-books, software, video games, apparel, furniture, food, toys, and jewelry. The company also produces consumer electronics – notably the Amazon Kindle e-book reader – and is a major provider of cloud computing services.

Nvidia Corporation is an American technology company based in Santa Clara, California. It designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on chip units (SoCs) for the mobile computing and automotive market. Its primary GPU product line, labeled “GeForce”, is in direct competition with Advanced Micro Devices (AMD) “Radeon” products. Nvidia expanded its presence in the gaming industry with its handheld Shield Portable, Shield Tablet, and Shield Android TV.

Tesla, Inc. (formerly Tesla Motors, Inc.) is an American electric vehicle and clean energy company based in Palo Alto, California. The company specializes in electric vehicle manufacturing, battery energy storage from home to grid-scale, and, through its acquisition of SolarCity, solar panel, and solar roof tile manufacturing. Tesla manufactures the Model S, Model X, Model 3, Powerwall, Powerpack, and Solar Roof. Tesla sells vehicles under its own brand and also through the SolarCity subsidiary.

Apple Inc. is an American multinational technology company headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software, and online services. The company’s hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, and the HomePod smart speaker. Apple’s software includes the macOS and iOS operating systems, the iTunes media player, the Safari web browser, and the iLife and iWork creativity and productivity suites. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Music, and iCloud.

Over the period from 2017 to 2022, these five stocks have absolutely crushed the market. And there are a number of reasons for the outperformance of these stocks. Firstly, they are all leaders in cutting-edge industries with huge growth potential. Secondly, they are all benefitting from secular trends like the shift to cloud computing, the rise of artificial intelligence, and the electrification of the global automotive fleet.

These stocks are also benefiting from a structural change in the market. The rise of index funds and exchange-traded funds (ETFs) has led to a situation where a small number of very large companies now dominate the market. This has made it difficult for active managers to outperform the market, as they are generally forced to own these large companies whether they like them or not.

As a result, investors are increasingly turning to so-called “passive” investments like index funds and ETFs. But even these investment vehicles have their limitations.

FAANG Stocks

FAANG stocks are the stocks of the five most popular and best-performing technology companies in the US, which include Meta Platforms Inc (NYSE: META), or former Facebook Inc, Amazon, Apple, Netflix, and Google (Alphabet).

Back in 2013, “Mad Money” host Jim Cramer coined the term “FAANG” to describe companies that represent the future and dominate in the industries they belong to. For a long time, FAANG stocks have been popular because they are the stocks of some of the most successful and innovative companies in the world. These companies have changed the way we live and work, and their products are used by billions of people around the world.

However, now, in 2022, some analysts are doubting if the FAANG club is still in demand. According to Mark Hawtin, the GAM investment director, these stocks are facing problems. They were innovators and creators, but their era seems to be over. They have reached a particular maternity level and will not be able to bring the profit they used to generate before. As a result, MANTA stocks are taking over.

What Is So Special about MANTA Stocks?

There are a few things that make MANTA stocks particularly attractive to investors. First of all, they have been some of the best-performing stocks over the past few years. They are also expected to continue growing at a rapid pace in the future. This is because each of these companies is dominant in their respective industries and they have strong competitive advantages that make it difficult for new entrants to compete with them.

Secondly, they offer exposure to some of the most innovative and disruptive technologies in the world.

As mentioned above, MANTA removes Netflix, Alphabet, and Meta. As Mark Hawtin explains, Netflix started struggling during the Covid-19 pandemic and is facing tough competition since then. Further, Alphabet and Meta are not protected against the falling demand for advertisement in the background of the general economic downturn the world is seeing in 2022.

According to Hawtin, FAANG stocks will still perform well, but their top position will be replaced by MANTA.

Conclusion

The FAANG stocks have been some of the most popular and profitable investments in recent years. However, there is a new kid on the block that is starting to make waves in the stock market. The MANTA stocks are a group of tech companies that are beginning to take over the FAANG stocks in terms of popularity and profitability.

Share:

FAQ

What are MANTA stocks?

MANTA is an acronym for Microsoft, Amazon, Nvidia, Tesla, and Alphabet (Google). These stocks have been on an absolute tear in recent years, and show no signs of slowing down.

Who invented the acronym MANTA?

The acronym MANTA was first coined by Wall Street Journal columnist Jason Zweig in a column published on October 14, 2005. Zweig used the term to describe a new breed of stocks that he believed were poised to outperform the market.

Is MANTA better than FAANG?

MANTA removes Netflix, Alphabet, and Meta. As Mark Hawtin explains, Netflix started struggling during the Covid-19 pandemic and is facing tough competition since then. Further, Alphabet and Meta are not protected against the falling demand for advertisement in the background of the general economic downturn the world is seeing in 2022. FAANG stocks will still perform well, but their top position will be replaced by MANTA.

guides
What Is FUD Strategy? June 14th, 2022

If you're unfamiliar with the term FUD, it's an acronym for "Fear, Uncertainty, and Doubt". It is a strategy to influence the perc...

What Is FTX Exchange? June 13th, 2022

There are a lot of crypto exchanges in the industry. However, some of them feature certain unique use cases which have triggered m...