Trading Nation

FANG stocks have plummeted from their highs, but one may be near a bottom 

Here are the buying opportunities amid the big tech wreck

FANG got wrecked this week.

Facebook, Amazon, Netflix, and Google parent Alphabet plummeted on Thursday, compounding weakness that has plagued the broader tech space.

At least one of those names could have hit a bottom, according to Matt Maley, equity strategist at Miller Tabak.

"The stock that I think could be compelling down here is Facebook," Maley said on CNBC's "Trading Nation" on Thursday. "It's not a crowded trade any more. It's been washed out."

Facebook is the only stock of the group negative for the year. It has dropped 10 percent in 2018, the bulk of those losses sustained after its notorious $120 billion drop in market cap in late July after its worrisome second-quarter earnings statement.

While Maley says the fundamentals in other FANG stocks might be more constructive, their steep run-up means they're more vulnerable to a pullback than Facebook.

"If the market begins to roll over, you're actually going to see the Googles and the Netflixes, some of that fast money, the momentum money, start to sell in a little bit of a panic move, but that money has already disappeared from Facebook," said Maley.

Facebook's relative strength index, a measure of momentum, tumbled from above 70 in July to below 40 in October. Its drop indicates the stock is approaching oversold conditions.

"One caveat, however, is the $150 level," added Maley. "That's the 2018 lows. You break below that level, that's the line in the sand. That would give it an important lower low, and be very negative for the stock."

Facebook fell below $150 at the year's lows in late March. It is still a 5 percent decline from those levels. It finished Thursday's trading day at $158.85.

Mark Tepper, president of Strategic Wealth Partners, is placing his bets with a tech pick outside of the FANG stocks.

"With Adobe we like them because we're extremely bullish on the cloud space," Tepper told "Trading Nation" on Thursday. "There's just not enough storage space in the cloud compared to where we think it's going to be five to 10 years down the road."

Adobe's document cloud business reached record sales of $249 million in its August quarter, 21 percent higher than a year earlier.

"Most of these cloud stocks are expected to maintain double-digit sales growth over the course of the next five years," Tepper added. "Adobe is set to lead the way. They're still the market leader in digital media."