Why a big tech turnaround could be ahead

Trading Nation: FANGs to get bite back?

Declawed FANG stocks — Facebook, Amazon, Netflix and Google Alphabet — could soon turn up again after falling since the election, one strategist says.

Some of the fundamentals certainly appear positioned against them. President-elect Donald Trump has come after Facebook for its supposed "censoring" of conservative news, and the social network has come under fire in the last week for its handling of fake news. Trump also battled against Amazon CEO and Washington Post owner Jeff Bezos, and has said net neutrality laws "."

Despite all this, the big-cap tech names could be in for a turnaround.

"I think they're oversold on the downside," Matt Maley, equity strategist and technical analyst at Miller Tabak, said Tuesday on CNBC's "Power Lunch."

In an e-mail to CNBC, Maley said the FANG stocks have become a source of cash to buy shares of other companies that are "suddenly assumed" to do well under Trump, like financials and industrials.

"In other worlds, I think the big cap tech names are part of the 'rotation trade' that's been going on since the election," Maley wrote.

Over the last week, Netflix is down nearly 9 percent, Facebook and Amazon are down nearly 6 percent and Alphabet is down over 4 percent.

Yet once this initial rotation plays out, these stocks should bounce back, according to Maley.

On Tuesday they all closed in the green and the Nasdaq finished 1 percent higher for its best daily performance since the day after the election. Alphabet, Amazon and Microsoft contributed the most gains to the tech-heavy index.

Net neutrality laws, which prohibit internet service providers from charging different prices for different web services, may decide the fate of some of these names, said Gina Sanchez of Chantico Global.

"Going into the election and during the election, he was basically against net neutrality, and that would be very, very difficult for companies like Amazon and Netflix, who require bandwidth in order to deliver their services," Sanchez said Tuesday on CNBC's "Power Lunch."

"So we'll see how this goes forward, and I don't think we're going to find out what happens until we find out a more definitive stance on what Trump intends to do with that policy."

Stifel Nicolaus, in a note published Friday, named all FANG stocks as top picks in its Internet Overview & Research report.