Which FANG Stocks Should You Buy In the Trump Era?


The stock market has been on quite a run since Donald Trump was elected on November 8. However, while the SPDR S&P 500 ETF Trust SPY has risen 2.7 percent since Election Day, the tech sector has lagged.

FANG stocks Facebook Inc FB, Amazon.com, Inc. AMZN, Netflix, Inc. NFLX and Alphabet Inc GOOGL all sold off more than 6.5 percent in the days following the election. Although the stocks have since bounced back, they are all still trading below their pre-election level. Traders are concerned about the potential negative impact that Trump’s policies could have on Silicon Valley.

While he acknowledges the uncertainty surrounding Trump’s impact on net neutrality, immigration, regulation and international trade, Oppenheimer analyst Jason Helfstein sees the post-election FANG selloff as a buying opportunity.

“FANG valuations appear attractive after the recent selloff, trading below their historical premium vs. an index of 25 Dow Industrial stocks,” Helfstein explains.

Helfstein sees the most upside for Amazon and Facebook, but Oppenheimer maintains Outperform ratings on all four stocks.

For Amazon, Helfstein sees stable consumer spending driving a strong holiday shopping season and stable AWS prices driving strong top-line growth and margin expansion.

For Facebook, he sees faster-than-expected ad monetization as the key catalyst, including “bot” monetization testing for Messenger in 2017.

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Posted In: Analyst ColorLong IdeasPoliticsAnalyst RatingsTechTrading IdeasGeneralDonald TrumpFANG StocksJason HelfsteinOppenheimer
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