From FAANG to MANGO – the new acronym analysts are sinking their teeth into
In this week’s video insight I discuss a new acronym coined by analysts that encapsulates a group of technology companies that are dominating global markets; MANGO (Meta, Apple, Nvidia, Google, and OpenAI).
Investors have long used catchy terms to describe dominant technology stocks – think FAANG (Facebook, Apple, Amazon, Netflix and Google), and Magnificent 7 (Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla).
We are now seeing a shift from FAANG stocks (which thrived on consumer platforms – e.g. subscriptions and ads), to MANGO stocks (which are all about foundational technologies: Artificial Intelligence (AI), advanced semiconductors, and cloud computing). This signals a deeper transformation in the global economy – from companies that don’t just sell products; they monetise innovation by creating tools that drive productivity and fuel economic growth.
Listen to my video to learn more.
Transcript:
Welcome to this week’s video insight. Today, we’re diving into a topic that’s got some investors buzzing: the shift from FAANG to MANGO, and why this new acronym is defining the next era of economic dominance.
Professional investors love a good acronym, and they love a winner even more. From the Nifty Fifty to FAANG, and now the Magnificent Seven, catchy names help us group the rock star stocks that capture the zeitgeist of commercial dominance. A decade ago, FAANG – Facebook, Apple, Amazon, Netflix, and Google – was the gold standard, with market caps rivalling entire countries’ Gross Domestic Product (GDP)s. But markets evolve, and in 2025, a new acronym is taking centre stage: MANGO.
To be honest, MANGO isn’t brand new. Back in 2022, a Bank of America analyst coined MANGO to highlight semiconductor stars like Nvidia Marvell Technology, and ON Semiconductor. Fast forward to today, and analyst Stirling Larkin has redefined MANGO as Meta, Apple, Nvidia, Google, and the yet-to-be-listed OpenAI, the brains behind ChatGPT. Why the shift? It’s not just a rebrand – it’s a signal of a deeper transformation in the global economy.
The move from FAANG to MANGO reflects a seismic shift in value creation. FAANG stocks thrived on consumer platforms – think subscriptions and ads. MANGO, on the other hand, is about foundational technologies: Artificial Intelligence (AI), advanced semiconductors, and cloud computing. These are the engines driving every industry, from healthcare to logistics. MANGO companies don’t just sell products; they monetise innovation, building tools that redefine productivity and fuel economic growth.
And, here’s where it gets interesting for investors. Despite the Federal Reserve’s aggressive 550-basis-point rate hikes since 2022, which should’ve crushed tech valuations, the S&P 500 – led by MANGO stocks – keeps hitting record highs. Why? Explosive earnings growth. Conservative estimates peg MANGO’s forward free cash flow at a 24 per cent compound annual growth rate, even with heavy R&D (Research and Development) spending. Nvidia’s five-year growth exceeds 40 per cent, and Meta’s holding strong in the mid-teens.
The kicker of course, is these companies are getting more profitable as they scale, defying traditional business school logic. Normally, growth leads to mean-reverting returns on equity, but MANGO’s network effects – data fueling better algorithms, attracting more users, generating more data – create a virtuous cycle of super-exponential cash flows. Nvidia’s Graphic Processing Units (GPUs) and Meta’s AI platforms aren’t just products; they’re self-reinforcing ecosystems.”
And they’re not skimping on innovation either. MANGO stocks allocate 22 per cent of sales to R&D – triple the S&P 500 median. This fuels breakthroughs at an unprecedented scale. Plus, geopolitics plays a role. In normal times, a company like Nvidia, with an 80 per cent market share, might face antitrust scrutiny. But today, AI and semiconductors are strategic assets, like oil or steel once were. The U.S. isn’t about to weaken its champions when global rivals are circling.
The question of course is are they in a bubble? According to some estimates, a two-stage discounted cash flow model – employing 18 per cent growth for five years, and tapering to 7 per cent indefinitely (a big ask) produces a valuation for Alphabet’s of roughly $220 per share, above its recent price. Nvidia, with faster near-term growth, appears 10 per cent undervalued. These aren’t meme stocks or NFTs; they’re structural players in what could be the next industrial revolution.
With AI and computing power reshaping what’s possible, MANGO stocks are leading the charge. And keep an eye on quantum computing – two of the best-performing U.S. stocks last year, up 10 and 20 times, are in this space. The future is here, and some say the future is… M-A-N-G-O.
That’s all we have time for this week. See you again next week and until then please follow us on Facebook and X.
Disclaimer:
The Polen Capital Global Growth Fund owns shares in Amazon, Alphabet, and Microsoft. This article was prepared 24 June 2025 with the information we have today, and our view may change. It does not constitute formal advice or professional investment advice. If you wish to trade any of these companies you should seek financial advice.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
He is also author of best-selling investment guide-book for the stock market, Value.able – how to value the best stocks and buy them for less than they are worth.
Roger appears regularly on television and radio, and in the press, including ABC radio and TV, The Australian and Ausbiz. View upcoming media appearances.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
