- On the post-election downtrend in the technology sector, Gene Munster, "would be buying the fear priced into internet mega-caps," noting concerns over the incoming U.S. administration are "largely extrapolated from sound bites that are unlikely to manifest." Believes potential net neutrality rollbacks, H1-B visa limitations and other speculative headwinds to remain unrealized.
- Since Election Day – Facebook (NASDAQ:FB) -6%, Amazon (NASDAQ:AMZN) -4.5%, Alphabet -2.6% (GOOG), -3.3% (GOOGL), Netflix (NASDAQ:NFLX) -6.7%
- Further: "Amazon, Alphabet, Facebook, and Netflix have clear, long-term tailwinds for revenue and earnings growth; in our opinion, on long-term valuation frameworks each looks attractively priced. Moreover, as investors roll their focus to 2018 estimates for their valuation frameworks these companies look remarkably attractive relative to broader tech and the market."
- Concludes that "long-term investors should use this pullback as an opportunity to buy long-term secular winners at discounted valuations."
Original article