So-called FANG stocks—Facebook, Amazon, Netflix and Google—are worth sticking with despite the fact that most of them dropped a few points, the managing directors of two large equity firms said Friday.
While the stocks can be affected on a macro level by GDP growth and global market problems being caused by countries such as China, Ken Sena of Evercore ISI told CNBC's "Power Lunch" these companies "are performing well for a reason" and advocated for investors to stay with them.
MKM Partners' Rob Sanderson was in agreement, stating that the outperforming stocks tell some really great long-term stories. "There's some very strong long-term stories here, and people are more likely to be looking for areas to build positions and buy on weakness" and subscribe to a "stick-to-winners mentality."
The two also weighed in on Alibaba, which celebrated the one-year anniversary of its IPO on Friday. The e-commerce company is facing trouble due to the fact that it is both an Internet stock and a Chinese stock.
Sanderson said it will be difficult for the company and investors, but the "lockup" is something they need not worry about.
"Almost 800 million shares there are soft bank. We know what's gonna happen with 384 million Yahoo shares, and the founders are almost 300 million, so there's probably not a lot of incremental supply from the walk-up expiration," he said. What investors should fear is a possible devaluation of the yuan, which will affect the transition back to U.S. dollar, he added.