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What's Next For FANG Stocks After Recent Weakness?

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What's Next For FANG Stocks After Recent Weakness?

Technology stocks continue to see some selling pressure, but there isn't any reason for investors to be overly concerned, according to MKM Financial's Jeff Kilburg.

The Analyst

Kilburg discussed tech and FANG stocks during CNBC's "Worldwide Exchange" segment Monday.

The Thesis

Technology stocks, particularly the "FANG" stocks, are all off their highs, but the major indices remain near their all-time highs, Kilburg told CNBC. The S&P 500 index is just 2 percent off its all-time highs and global assets continue to shift toward American stocks at a time of surging yields in the 10-year note, he said. 

Maley: Facebook No Longer A Crowded Trade

Facebook, Inc. (NASDAQ: FB) is down the most in 2018, having lost nearly 15 percent of its value. The stock is less vulnerable moving forward if the tech sector continues to sell off, since Facebook is no longer a "crowded trade," Matt Maley, an equity strategist at Miller Tabak, told CNBC.

"If the market begins to roll over, you're actually going to see Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) and Netflix Inc (NASDAQ: NFLX), some of that fast money, the momentum money, start to sell in a little bit of a panic move," he said. "But that money has already disappeared from Facebook."

Price Action

Facebook shares were down 1.15 percent at $155.52 at the time of publication Monday. 

Related Links:

Nomura's Case For Adding Square To The FANG Trade

The End Of The FANG Era? Gene Munster Makes The Case

Posted-In: CNBC Jeff Kilburg Matt Maley Miller Tabak MKM FinancialAnalyst Color Analyst Ratings Media Best of Benzinga

 

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