"If you can buy a good technology company, like a Cisco, at 14 times earnings with a good yield, we think you’re going to do well," he said.
Tuesday's comeback in tech stocks pushed the Nasdaq 0.6 percent higher after falling as much as 0.7 percent. Amazon reached an all-time high, up 1.5 percent. The e-commerce giant had previously fallen 1.4 percent after Amazon suffered glitches during Prime Day. Meanwhile, Netflix also rebounded, trading 4.3 percent lower, compared with its earlier low, down as much as 14.1 percent. The streaming company fell after reporting weaker-than-expected subscriber growth during Monday's earnings.
Many investors thought the dip represented a buying opportunity, but Katz said he's "weary about buying something at 80 times earnings. Because if there’s any sort of disappointment, the stocks really do have a lot of downtime. Not just for one day, but for actually months."