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 TrustSPY 0.47% has risen 2.7 percent since Election Day, the tech sector has lagged.
FANG stocks Facebook Inc FB 0.02%, Amazon.com, Inc. AMZN 1.74%, Netflix, Inc. NFLX 0.41% and Alphabet Inc GOOGL 0.71% 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…
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