Even though the FANG stocks are significantly underperforming, one Wall Street analyst is still a believer and bullish on the names.
"Year-to-date volatility in the (Internet) sector has partly been a function of positioning, some adjustment to potentially heavier investment spending," JPMorgan's Doug Anmuth wrote in a note to clients Monday. He added, "We believe secular growth and underlying fundamentals remain solid."
The four-stock basket is down about 9 percent this year compared to the S&P 500's negative 2 percent return. Facebook is the only stock positive on the year, with Amazon.com faring the worst among them, down 16 percent year to date.
Here's why the analyst reiterated his "overweight" ratings on the FANG stocks.