JPMorgan still loves the falling FANG stocks

FANG (Facebook, Amazon, Netflix and Google) apps on a smartphone.
Adam Jeffery | CNBC

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."

FANG is an acronym created by CNBC's Jim Cramer for the top-performing technology stocks — Facebook,, Netflix and Alphabet (formerly Google).

The four-stock basket is down about 9 percent this year compared to the 's negative 2 percent return. Facebook is the only stock positive on the year, with faring the worst among them, down 16 percent year to date.

Here's why the analyst reiterated his "overweight" ratings on the FANG stocks.

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