"MANG" over "FAANG"?

Financial analysts at Jefferies have recently recommended that investors avoid looking to FAANG + Microsoft, and instead consider MANG as a new Wall Street standard. FAANG’s stock market collective consists of $Meta Platforms (FB.US)$ , $Amazon (AMZN.US)$ , $Netflix (NFLX.US)$ , and $Alphabet-A (GOOGL.US)$ .

Although FAANG companies, alongside $Microsoft (MSFT.US)$ , have been highly popular over the past decade and beyond, the stocks are beginning to contend with deep downturns. In the case of Netflix in particular, the stock has fallen more than 70% in 2022 alone. Likewise, Facebook is currently on a 41% decline in 2022 to date.

Alternatively, the MANG Group, which consists of stocks like Microsoft, Apple, Nvidia, and Alphabet represents a better option for investors, owing to “their balance sheet, earnings yield and free cash flow yield,” according to Sean Darby, who led the Jefferies analysts' guidance. Furthermore, Darby emphasized that FAANG + Microsoft is "not a homogenous group," and that MANG offers investors the better opportunity for future yields.

Although $NVIDIA (NVDA.US)$ has also been badly affected by the recent tech stock sell-offs from investors, its position as a market leader in the production of GPUs may leave the company far better placed to recover faster in a market that’s set to witness the development of the metaverse.