The Nasdaq 100 index has recovered over 15% in less than a month, but that doesn’t warrant blindly shoving your money into tech stocks, says Loop Capital’s Gene Munster.
Which of the FAANG stocks does Munster like?
Munster wants investors to pick and choose, and not broadly own the FAANG stocks. One name in this space that he dubs a “buy” despite a 25% gain already is Meta Platforms Inc (NASDAQ: FB). On CNBC’s “Squawk Box”, he said:
Meta is still trading at 19 times 2022 earnings, expected to grow 13%, versus 15% growth for Amazon and 18% for Google. So, there’s still room for upside. Loop Capital owns Facebook. We favour Meta Platforms because it just looks attractive.
A broader push into the metaverse is among other reasons why Munster has a positive view on FB. Only days ago, Bryn Mawr Trust’s Jeff Mills also said Meta was still inexpensive to own.
Why is he cautious on Amazon.com Inc?
Another FAANG stock that’s jumped 25% in recent weeks is Amazon.com Inc (NASDAQ: AMZN). Munster likes the name for the longer-term but warned the near-term outlook isn’t very promising. He noted:
Amazon trades at 17 times this year’s earnings and has a weight around it on the cost and logistics side that I don’t think is going to ease anytime soon. We’ve also had some of the vectors related to the union. When you put these together, I’d be cautious.
Last week, Amazon workers at the JFK8 warehouse voted to unionize and labour activists want to replicate the same through the rest of Amazon’s countrywide warehouses.
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