The article discusses the shift in the tech industry from the traditional FAANG companies to the new MANGO group, which includes Microsoft, Anthropic, Nvidia, Google DeepMind, and OpenAI, reflecting the current dominance of AI leaders in consumer and enterprise markets. This change signifies a new focus on AI innovation and a more competitive talent landscape, marking a transition from the era of individual tech giants dominating specific domains to a concentrated AI revolution.
The article recommends buying shares of Alphabet and Netflix in 2024, citing Alphabet's recovery in sales and free cash flow, and Netflix's focus on profitability and cash flow optimization. Conversely, it advises against investing in Meta Platforms due to its heavy investment in the metaverse with little current return and the uncertainty of AI being a significant growth driver for the company. Despite Meta's stock price increase in 2023, the article suggests caution as the company's AI and metaverse strategies may not yield the expected results, potentially leading to a market correction.
The article recommends buying shares of Alphabet and Netflix in 2024, citing Alphabet's recovery in sales and free cash flow, and Netflix's shift towards profitability and efficient cash flow management. Both companies are seen as undervalued with strong future prospects. Conversely, the article suggests avoiding Meta Platforms, as its heavy investment in the metaverse and AI may not yield the expected returns and could lead to a market correction. Despite Meta's recent stock gains, the author is skeptical about its growth strategy compared to Alphabet's established AI and cloud services.
The first quarter of 2022 ended on a high note for markets, with the S&P 500 finishing up 7%. Foot Locker's CEO Mary Dillon is refocusing the company on sneakers to ensure it's around for the next 50 years. Lyft has ordered a new CEO, David Risher, who is focused on getting back to basics and may consider a sale of the company. The FAANG complex saw a return of buying interest, with all stocks outperforming the S&P 500's increase in the quarter.
