Everyone knows the FAANG stocks. For years they were the reason your S&P 500 ETF chart constantly went up.
FAANG = Facebook, Apple, Amazon, Netflix, Google.
The acronym was coined in 2013 by Jim Cramer on CNBC, originally standing for Facebook, Amazon, Netflix, and Google. Apple was later added, making it FAANG. The group represented explosive growth, market dominance, and an outsized role in shaping the global economy.
But as times change, so does the acronym.
Several of the original names have evolved. Facebook rebranded as Meta in 2021, and Google has been part of parent company Alphabet since 2015. To reflect these shifts, Jim Cramer introduced a new acronym: MAMAA.
MAMAA now stands for:
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Microsoft replaced Netflix, which has underperformed compared to its peers. Investors and analysts also use terms like FAAMG (Facebook, Apple, Amazon, Microsoft, Google), but MAMAA is gaining traction as the most relevant label for today’s tech leaders.
Even if the branding sounds like baby talk, these 5 stocks remain among the most valuable and influential companies in the world. Collectively, they account for:
– Around 15% of the S&P 500’s market capitalization
– Over 30% of the NASDAQ-100’s weighting
This means if you buy an S&P 500 ETF or a NASDAQ-100 ETF, you automatically gain exposure to these companies. Their share price movements heavily influence the broader market.
For investors seeking even more targeted exposure, buying individual shares or ETFs that specifically focus on tech is an option.
Meta owns three of the most important social apps worldwide: Facebook, Instagram, and WhatsApp. With billions of monthly active users, the company remains at the center of global communication and advertising. It is also investing heavily in virtual reality and the metaverse, though adoption has been slower than initially expected.
Apple remains a global trendsetter. From the iPhone to the Apple Watch, its ecosystem of products and services generates some of the highest brand loyalty in the world. Services like Apple Music, iCloud, and Apple Pay now contribute significantly to its revenue alongside device sales.
Originally an online bookstore, Amazon is now an e-commerce, cloud, and media powerhouse. Its AWS division is a profit machine that powers countless businesses worldwide. Amazon Prime subscriptions, advertising, and logistics make it one of the most diversified players in tech.
Microsoft continues to be one of the world’s largest software and cloud companies. Azure is a key competitor to AWS, while products like Office 365 and Teams dominate the business productivity space. Its acquisition of LinkedIn and gaming investments, including Xbox and Activision Blizzard, broaden its reach even further.
Alphabet is more than Google Search. It owns YouTube, Android, and Google Cloud. The company earns the majority of its revenue from digital advertising, but is also investing heavily in AI, self-driving technology (Waymo), and other moonshot projects.
Although no longer in MAMAA, Netflix remains an important media player. It pioneered subscription video streaming and still has hundreds of millions of global subscribers. However, rising competition from Disney, Amazon, and Apple has slowed growth. The company is now experimenting with ad-supported tiers and gaming, but their growth has stagnated.
You can gain exposure in two main ways:
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At SandstoneFX, we make investing in FAANG and MAMAA stocks straightforward. You can:
If you do not yet have an investment account with SandstoneFX, you can open one online quickly and easily.
