Allianz Technology Trust (ATT) doesn't hold heavy positions in many FAANG stocks, senior portfolio manager Walter Price told CNBC on Friday, partly because he prefers opportunities elsewhere, but also because he doesn't see massive growth ahead.
FAANG refers to a basket of high-technology growth stocks — Facebook, Amazon, Apple, Netflix and Google — that have led the bull run of the last nine years. Those five stocks now represent 50 percent of the market cap of the Nasdaq 100 index.
"We have very small positions in Google and Facebook and many of the FAANGs — because we think there are great opportunities elsewhere, and it's really hard for us to rationalize a stock that's worth $500 billion to a trillion going up another 50 or 100 percent. I think that would be very improbable," Price told CNBC's "Squawk Box Europe." Price also serves as a managing director with Allianz Global Investors.
For the first time in history, investors are anticipating a public company reaching a market value of $1 trillion, and analysts are putting their bets on Apple to win that race. And investors seem happy to keep in bidding up these tech stocks — only on Thursday did the Nasdaq briefly dip back from record levels.
But many now question the logic of buying some of these tech stocks and whether their valuations are justified. Some investors doubt the ability to still get bang for your buck, with one wealth management fund manager calling them "hideously overvalued."