Does SpaceX Make Mag 7 “Slightly Outdated”? Wall Street Needs to Come Up with a Cool New Nickname for Big Tech Stocks

Source: Global Market Briefing

Last week, SpaceX made a strong market debut with a valuation exceeding $2 trillion, surpassing two companies of Wall Street’s “Magnificent 7” (Mag 7) and raising a key question: Does the label “Magnificent 7” still apply? If not, what should replace it?

SpaceX’s IPO was the largest in U.S. history, bringing SpaceX’s market cap above two of the Mag 7: Elon Musk’s other company, Tesla, and Meta. Analysts say with trillion-dollar candidates like OpenAI and Anthropic getting ready for IPO, the club may soon need a new name.

Shay Boloor, Chief Market Strategist at Futurum Equities, stated that with SpaceX joining, “it’s getting very difficult to continue using ‘Mag 7’ as shorthand for market leadership since one of the world’s most important companies is now excluded from that label.”

These groupings are not formal market categories, but shorthand labels strategists, investors and media use to capture the hottest large-cap stocks of a given moment. This has a long history, from the “Nifty 50” of the 1960s and ’70s to the “Four Horsemen” of the internet bubble at the end of the ’90s.

SpaceX’s IPO has sparked a rush to invent the next cool acronym.

On X, one nickname growing in popularity is “MANGOS,” representing Meta, Anthropic, Nvidia, Alphabet, OpenAI, and SpaceX. However, this grouping is far from a standard definition—some interpret the “A” as Apple, currently the third largest public company in the U.S. by market cap.

“We’ve already started using this name internally, and it’s gradually being adopted in the industry,” said Aga Kuplinska, SVP of Product Development at Tidal Financial Group. The company helps asset managers launch ETFs.

Dan Boardman-Weston, CEO of BRIWealth Management offered a different suggestion: “Magna Atoms”—the Mag 7 plus SpaceX, OpenAI, and Anthropic.

The “Magnificent 7” Market

The “Magnificent 7” term was coined by Michael Hartnett, Chief Investment Strategist at Bank of America Global Research, in late 2023 to describe seven heavyweight tech stocks: Nvidia, Apple, Amazon, Alphabet, Meta, Tesla, and Microsoft.

As the AI boom drives the market to new record highs and new trillion-dollar companies suddenly emerge, the rankings on the list are often in flux.

In a May 22 report, Bank of America introduced the concept of the “AI Ten Giants,” adding Broadcom, Micron Technology, and Advanced MicroSemiconductor to the original seven to reflect the strong performance of the semiconductor industry over the past year. According to data from the London Stock Exchange Group (LSEG), the “AI Ten Giants” now comprise more than 40% of the S&P 500 by index weight.

These labels have evolved many times—from FANG to FAANG to the “Magnificent 7”—with each update reflecting changes in the companies leading the market.

FANG included Facebook, Amazon, Netflix, and Google. FAANG added Apple, while the “Magnificent 7” dropped Netflix and added Microsoft, Nvidia, and Tesla, with each change reflecting a shift in market leadership.

“The term ‘Magnificent 7’ has been used for a number of years. Perhaps the market is ready for something new,” said Dustin Thackeray, Chief Investment Officer at Crewe Advisors.

Of course, not everyone thinks the old name will fade away just yet.

“The ‘Magnificent 7’ label won’t disappear,” said the CEO of Roundhill Investments, Nvidia. “It is firmly embedded in how investors and the media think about the big tech leaders. In the future what you’ll see is supplements to the term, not replacements.”