Here's how much Internet stocks have soared

Monday, 11 Nov 2013 | 4:09 PM ET
Internet sector peaking?
Monday, 11 Nov 2013 | 12:00 PM ET
Have internet stocks come too far, too fast? The "Fast Money Traders" discuss if it's time to take profits on some of the leading internet giants like Facebook and Netflix.

Internet stocks have been on fire during the last year, but the sector may be bracing for a pullback.

Morgan Stanley downgraded the Internet sector to "in-line" from "attractive" on Monday, citing high valuations.

Internet companies'—including Google, Amazon and Facebook—valuations are too high relative to their long-term growth prospects, Morgan Stanley analysts said.

As part of the call, Morgan Stanley also removed Google from its Best Ideas list, maintaining its overweight rating.

Notable tech investor Marc Andreessen, who is a Facebook director and notable venture capitalist, may sense such a pull back as well.

Andreessen's venture capital firm, Andreessen Horowitz, sold 2.28 million Facebook shares earlier this month. However, the firm still holds 4.57 million Facebook shares.

(Read more: Facebook director Andreessen's firm sells a third of its shares)

By CNBC's Cadie Thompson. Follow her on Twitter @CadieThompson.

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  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.