Is It Time For FANG To Step Aside And Let Old Tech Shine?
Steven Milunovich from UBS spoke on CNBC's "Squawk Box" recently, discussing the tech sector outlook amid the recent selloff. One of the main subtopics covered in the conversation was whether the sector presents a buying opportunity for investors.
"I don't know if we're at the bottom yet," Milunovich began. "We're actually down 20 percent from the highs in early December, and it appears that the high flyers [the FANG components]… are having troubles now."
Those members of the "FANG" conglomerate include Facebook Inc (NASDAQ: FB), Amazon.com, Inc. (NASDAQ: AMZN), Netflix, Inc. (NASDAQ: NFLX) and Google-parent Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG).
A Shift Back Toward ‘Old Tech'
Milunovich continued, "I'm here kind of representing old tech, and I think there is going to be a bit of a shift back to value – I'm not making a huge case for old tech, but I think the ‘water's fine in the pool' with the free cash flow."
Furthering his position, Milunovich explained, "We think money is going to flow to the companies that actually have some earnings and some free cash flow."
Watch the rest of the talk and hear from other experts in the space here.
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