Fb and Netflix are nice selections for traders within the close to time period at the same time as the specter of a heightened U.S.-China commerce conflict looms over the expertise sector, Mark Mahaney, lead expertise analyst at RBC Capital Markets, instructed CNBC on Wednesday.
U.S. shares had been rebounding Wednesday after the Trump administration mentioned a Chinese language delegation coming to Washington nonetheless intends to succeed in a commerce settlement. The tech-heavy Nasdaq was buying and selling modestly greater early afternoon Wednesday after closing down practically 2% Tuesday.
Chipmakers, particularly weak if China retaliates, led the tech sector decrease earlier this week after President Donald Trump threatened to impose tariffs on Chinese language items.
Among the many large-cap tech shares, Fb and Netflix have a low publicity to China at roughly 1% to 2%, Mahaney mentioned. Moreover, Fb is an inexpensive inventory when contemplating its price-earnings ratio, whereas Netflix will proceed to be a “income development story” because it retains producing well-liked unique content material, he mentioned in an interview on “The Change.”
He expects that the extremely anticipated season three launch of “Stranger Issues” shall be a boon for Netflix.
Mahaney mentioned tech large Apple clearly has extra publicity in China, however requested traders to contemplate whether or not they’re wanting on the inventory in a long-term or short-term view.
Kim Forrest, chief funding officer at Bokeh Capital Companions, mentioned in the identical interview that Microsoft would even be a sensible choice for traders amid commerce tensions. “It is extra centered on companies now quite than hardware” or units, Forrest instructed CNBC.