Friday, June 10, 2022

FANG stocks defanged by Meta Platforms ticker change


With Facebook parent Meta Platforms changing its ticker to META from FB on Thursday, the FANG group of top internet stocks loses more relevance. Will talk of FANG stocks wither after the change? Will a new stock group emerge to define the next growth era?
CNBC’s “Mad Money” host Jim Cramer coined the term FANG stocks in 2013 to refer to the group of leading internet companies: Facebook, Amazon, Netflix and Google.
The FANG stocks group persisted after Google was placed under umbrella organization Alphabet in 2015. But Alphabet retained its GOOG and GOOGL tickers, allowing the acronym to continue.
Certainly, many Wall Street analysts and investors will continue to use the FANG acronym despite the change. The same is true for its many variants: FAANG (which adds Apple to the mix), FATMAN or FAATMAN (Facebook, Amazon, Apple, Tesla, Microsoft, Alphabet and Netflix), FANMAG (Facebook, Amazon, Netflix, Microsoft, Apple and Google). There’s also FANGMAN (which adds Nvidia).
Cramer suggested MAMAA (Meta, Apple, Microsoft, Amazon and Alphabet) as a replacement, though others have stylized it as AMAMA.
Others have played around with acronyms with the companies Apple, Amazon, Alphabet (or Google), Meta, Microsoft, Netflix and Tesla. They’ve come up with GAMMA, MANGA, MAGMA, MANTA and A MANTA.
China’s version of FANG stocks is the BAT stocks. BAT includes internet companies Baidu, Alibaba and Tencent. There’s also BAIT, which adds iQiyi.
With FANG stocks defanged by Facebook and Google name changes, what stock group will define the next growth era?
In March, BofA Securities analyst Vivek Arya created a grouping of top semiconductor stocks under the acronym MANGO. The MANGO stocks include Marvell Technology (MRVL), Advanced Micro Devices (AMD), Analog Devices (ADI), Broadcom (AVGO), Nvidia (NVDA), GlobalFoundries (GFS) and Onsemi (ON). Arya combined the three tickers that start with A as one letter in the acronym. It looks better than MAAANGO.

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