FAANG

Understanding FAANG Stocks 

The term FAANG represents an elite group of American technology stocks, namely Meta (META), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Alphabet (GOOG). This acronym was first conceived by Bob Lang and later gained momentum through Jim Cramer in 2013. Initially, it was referred to as "FANG," with Apple joining the ranks in 2017. 

These tech giants, boasting a combined market capitalization of an astounding $7 trillion, stand as some of the largest companies on a global scale. They pique the interest of high-profile investors and form an integral part of the S&P 500 Index. As of August 2021, their collective influence accounted for approximately 19% of the S&P 500. 

The Emergence of MAMAA Replacing FAANG 

Recent trends among tech investors have led to the introduction of a new acronym - MAMAA, which comprises Meta, Amazon, Microsoft, Apple, and Alphabet. The entry of Microsoft, a powerhouse in software and cloud services, has led to Netflix's exit. Microsoft commands a market cap exceeding $1 trillion, while Netflix has seen a decline to $130 billion. 

Beginning in 2023, the conversation around leading tech stocks has shifted, with MAMAA now being the preferred reference.