Four companies make up the TANDs and the FANGS and five make up ATLAS, which (if any) of these groups will see the best performing techs post-Covid?
TANDs versus Atlas versus FANGs, which tech group will win post-Covid?
TANDs, FANGs and ATLAS post-Covid, will any of these groups triumph? Or are there more techs out there worth considering? Let’s see what the acronyms mean, and whether any UK techs could make the grade.
TANDs stands for Tesla, Activision, Nvidia and Disney. FANGs stands for Facebook, Amazon, Netflix and Google, while the ATLAS companies overlap with the TANDs. ATLAS stands for Apple, Tesla, Lam Research, Advanced Micro Devices and Salesforce.
This is what each of these companies specialise in. I know much of this is obvious, but below I refer to aspects of the businesses that are not quite so obvious
|Activision||Computer and video games.|
|Amazon||Online shopping, but is also the largest cloud provider.|
|Advanced Micro Devices||Hardwars: computer chips. Has long been Intel’s main rival, but has been focusing more on specialist chips.|
|Apple||Aside from the obvious, revenue from services is becoming an ever more important part of the business, including its cut from all products sold using iOS — the Apple operating system. This is being disputed by video games publisher Epic regarding its hugely popular game Fortnite.|
|Disney||It’s is difficult to know which will be the more important part of the business in the future; theme parks (which have clearly taken a knock from Covid), movies, which have also been affected by Covid related cinema shutdowns, and its premium video service which competes directly with Netflix.|
|Google/Alphabet||Aside from the obvious, Google has interests in multiple areas that could one day be more important to the business than search. These include AI (which admittedly ties in with search), autonomous cars and maybe most important of all health tech — which of course builds upon its AI capability. It is also one of Amazon’s main rivals as a cloud provider (the other being Microsoft).|
|Obviously social media is becoming massively controversial at the moment with its echo chambers and use of data. But watch Oculus Rift, it’s virtual reality subsidiary; this technology is just a few evolutionary mutations from changing the world.|
|Lam Research||Provides equipment and services to companies like AMD and Intel.|
|Netflix||Premium online video.|
|Nvidia||Chip sets to support superior graphics in video games, but its technology is also being applied in AI, specifically neural networks, and it is this that makes it interesting. The company has acquired ARM.|
|Salesforce||A cloud based software company.|
|Market cap||Share price growth this year||Share price growth last five years|
|Activision||$62 billion||Up 36 per cent||Up 160 per cent|
|Amazon||$1.58 trillion||Up 66 per cent||Up roughly 600 per cent|
|Advanced Micro Devices||$93 billion||Up 60 per cent||Up forty-fold|
|Apple||$1.95 trillion||Up 53 per cent||Up roughly 400 per cent|
|Disney||$226 billion||Down 16 per cent||Up 25 per cent|
|Google/Alphabet||$999 billion||Up seven per cent||Slightly more than doubled|
|$746 billion||Up approximately 20 per cent||Up slightly less than three-fold|
|Lam Research||$49 billion||Up roughly 15 per cent||Up four-fold|
|Netflix||$218 billon||Up by a half||Up just short of five-fold|
|Nvidia||$327 billion||Up 120 per cent||Up 20-fold|
|Salesforce||$225 billion||Up 42 per cent||Up 230 per cent|
I covered the TANDs stocks here in November 2018. If you had bought into each company in equal amounts on that day, let’s say £1,000 each, then, ignoring currency fluctuations, your Tesla shares would be worth around £7,000, Activision £1,500, Netflix £1,630 and Disney £1,259. So the £4,000 you invested would be worth around £11,000. I have checked out the value of the pound versus the dollar and in November 2008 it was very close to the current value, so currency valuations would have had minimal effect.
I wrote about ATLAS stocks in February of this year. If you had bought into the five companies that day, £1,000 each then right now your money would be worth: Apple £1,425; Tesla £2,367, Lam Research £1,040, AMD £1,500 and Salesforce £1,329. The total would be £7,671. The pound has lost roughly 1.5 per cent, so taking that into account your £4,000 portfolio as of early February would be worth £7,287 today.
Of course, there are lots of good techs that don’t fall into these categories including Slack, Zoom and Snowflake. And Microsoft is missing from the groups too.
The UK has a few, but less than I would like, including Ocado, Aveva, Sage, Micro Focus, Blue Prism Codemasters, Trainline, Computacenter, and NCC group. Also see Three UK tech stocks to consider for your portfolio.
|Share price performance this year in percentage increase|
If you had invested £1,000 in each of these companies on January 1st, a total of £8,000, today they would be worth £9,590.
These views are those of the author alone and do not necessarily reflect the view of The Share Centre, its officers and employees