The vicious tech sell-off this year has hit the once high-flying FAANG stocks particularly hard, but also created a buying opportunity for investors looking to snap up shares of these Big Tech companies at more attractive valuations.
Some analysts think big tech stocks are good buys.
Tech stocks have been hard-hit this year as investors worry about the Federal Reserve raising interest rates.
Charles Lemonides, founder and chief investment officer of ValueWorks, says that the downside is brutal, but that also creates an opportunity.
A big earnings miss last week from Netflix, which said it lost subscribers for the first time in over a decade, has added to recent uncertainty around Big Tech stocks.
While investors should not read too much into the choppiness of the company, Lemonides is still bullish.
He says his firm is now looking at many of the other FAANG stocks in a similar way to Netflix after its big sell-off.
The founder and head of research at Fundstrat Global Advisors told CNBC that the FAANGs are still going to grow double digits.
Investing isn't really about trying to make money every month, but it is about trying to find the big swings and I think we are at a point where it is a big swing to own.
You can complain about the lost subscribers, but revenue was up 10% from the previous quarter and margins were solid. He believes that the company will offer a lower-priced subscription tier with advertising on its platform.
Revenue growth has been revealed to be slower by the fall of Alphabet shares.
The stock market continues to sell-off.
The first time in ten years that there has been a loss of subscribers.
The recession calls are growing as inflation threatens corporate earnings.
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