SpaceX made a dramatic entrance into public markets this week, achieving a valuation exceeding $2 trillion in what became the largest IPO in United States history. The space company’s market debut has now exceeded the value of two companies within Wall Street’s famous “Magnificent Seven” group – Tesla and Meta Platforms – sparking debate about whether this influential stock grouping needs a new identity.
The rocket company’s public offering has created complications for the widely-used market terminology, according to industry experts. “It becomes very hard to keep using Mag 7 as the clean shorthand for market leadership because one of the most important companies in the world would immediately be outside the label,” explained Shay Boloor, chief market strategist at Futurum Equities.
Market professionals are now scrambling to create fresh terminology for the evolving landscape of dominant technology stocks. One emerging option gaining popularity on social media platform X is “MANGOS,” representing Meta, Anthropic, Nvidia, Alphabet, OpenAI and SpaceX. However, this grouping remains inconsistent, with some analysts interpreting the “A” as Apple, which currently ranks as the third most valuable publicly-traded American company.
“We are already referring to it internally and the industry is picking up on it as well,” stated Aga Kuplinska, SVP of product development at Tidal Financial Group, which assists asset managers with ETF launches.
Alternative suggestions are also emerging. Dan Boardman-Weston, CEO at BRI Wealth Management, proposes “Magna Atoms” – combining the original Magnificent Seven with SpaceX, OpenAI and Anthropic.
These informal market categories serve as convenient labels created by strategists, investors and media outlets to identify the most prominent large-cap stocks during specific periods. Such naming conventions have deep historical roots, including the “Nifty 50” from the 1960s and 1970s era and the “Four Horsemen” during the late 1990s internet boom.
The “Magnificent Seven” designation was originally created by BofA Global Research Chief Investment Strategist Michael Hartnett in late 2023. This group encompassed seven major technology-focused companies: Nvidia, Apple, Amazon, Alphabet, Meta, Tesla and Microsoft.
Market leadership rankings frequently shift due to the artificial intelligence boom driving stock markets to unprecedented levels and the emergence of new trillion-dollar enterprises. In a May 22 research note, BofA discussed the “AI Big 10,” expanding the original seven by including Broadcom, Micron Technology and Advanced Micro Devices to reflect the semiconductor sector’s recent surge. This expanded group represents over 40% of the S&P 500’s total weight, based on LSEG information.
These market labels have transformed previously – evolving from FANG to FAANG to the Magnificent Seven – with each iteration reflecting changes among market-leading companies. The original FANG acronym included Facebook, Amazon, Netflix and Google. FAANG incorporated Apple, while Magnificent Seven removed Netflix and added Microsoft, Nvidia and Tesla, with each modification representing shifts in market dominance.
“It’s been Mag 7 for several years now. Maybe the markets are excited for something new,” observed Dustin Thackeray, chief investment officer at Crewe Advisors.
However, some industry professionals believe the established terminology will persist. “The Magnificent Seven label is not going away,” said Dave Mazza, CEO of Roundhill Investments. “It is too embedded in how investors and the media view large-cap tech leadership. What you will likely see is additive terminology rather than replacement.”
