- FAANG stands for Facebook, Amazon, Apple, Netflix, and Google, five big and highly successful US internet corporations.
- FAANG stocks account for 15% of the S&P 500, and their performance has a significant impact on the broader market.
- Individual investors or funds focused on the IT industry can purchase FAANG stocks.
The acronym FAANG for the five major American internet companies didn’t quite fit after Facebook changed its name to Meta Thursday.
Jim Cramer of Mad Money, who invented the phrase FAANG in 2013, announced a new acronym called MAMAA on Thursday.
After Apple’s stock fell on Friday, the maternal-sounding acronym dropped Netflix, which was the “N” in FAANG, and replaced it with Microsoft, which overtaken Apple as the world’s most valuable corporation. It also replaces the “G” that stood for Google with another “A” that represents Alphabet, Google’s parent corporation.
MAMAA stands for Meta, Apple, Microsoft, Amazon, and Alphabet, the parent corporation of Google.
Cramer claimed on Mad Money on Thursday that Facebook deserved to be included in the new FAANG, or MAMAA, moniker because to its desire to reinvent itself.
“What I observed today, when I saw Meta’s metaverse film,” he remarked on his show Thursday, “reminds me of why I developed the FAANG term in the first place.”
Cramer also praised Facebook’s idea of the metaverse, a digital environment in development for business and pleasure that he believes may be the “great equalizer” for small and medium-sized firms by allowing them to have their own 3D digital stores.
Although some on social media speculated that the word FAANG might be changed to MAANG as a result of Facebook’s rebrand, Cramer believes the entire acronym deserves a makeover.
“Come on, let’s get serious,” he remarked, suggesting that the “G” be replaced as well. “Darn it, let’s add a second “M,” let’s throw in Microsoft.”
While the stock prices of two major components of the MAMAA acronym, Apple and Amazon both fell on Thursday and Friday, Cramer advised investors to look at the big picture.
According to him, the MAMAA acronym as a whole is destined for long-term success.
He said, “Don’t gamble against MAMAA.”
