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FANG got wrecked this year – so far.
Facebook, Amazon, Netflix, and Google parent Alphabet plummeted during 2018, compounding weakness that has plagued the broader tech space.
At least one of those names could have hit a bottom, according to Matt Maley, equity strategist at Miller Tabak.
“The stock that I think could be compelling down here is Facebook,” Maley said on CNBC’s “Trading Nation” on Thursday. “It’s not a crowded trade any more. It’s been washed out.”
Facebook is the only stock of the group negative for the year. It has dropped 10 percent in 2018, the bulk of those losses sustained after its notorious $120 billion drop in market cap in late July after its worrisome second-quarter earnings statement.
While Maley says the fundamentals in other FANG stocks might be more constructive, their steep run-up means they’re more vulnerable to a pullback than Facebook.
“If the market begins to roll over, you’re actually going to see the Googles and the Netflixes, some of that fast money, the momentum money, start to sell in a little bit of a panic move, but that money has already disappeared from Facebook,” said Maley.
Do you think the sell-off is over in the FANNG stocks?
Are you personally buying FAANG stocks at these current prices?
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