Tech tumbles again — three experts weigh in on whether the rout continues

Technology stocks' painful sell-off dragged into another session on Monday.

FANG stocks Amazon, Netflix and Alphabet tumbled by more than 1 percent, while industry leader Apple fell 2 percent. The XLK technology ETF has tanked more than 8 percent since hitting the year's highs in early October.

Here's what three market watchers expect from the sector after recent weakness:

  • John Stoltzfus, chief market strategist at Oppenheimer Asset Management, says investors will jump back into a space that is now cheaper than before. "Intermittently it gets some bad news, people think tech has had it, but the multiples have really dropped after last week. Likely people will come back into the story. It remains solid to us," said Stoltzfus.
  • Scott Wren, senior global equity strategist at Wells Fargo Investment Institute, says this is a normal market rotation that should circle back to growth stocks such as tech. "From time to time when you're later in the cycle and there's a little more inflation and a little bit more growth and the Fed's hiking rates, you're going to have some bouts of value outperformance, but I think overall those would be pretty brief," said Wren.
  • Nancy Davis, CIO of Quadratic Capital, sees opportunity in tech outside of the U.S. "The Chinese companies are doing much better, and it seems like China is also easing rates. They've cut the reserve requirement for central banks, so they're kind of an outlier to the rest of the world," said Davis. "I like looking at Chinese tech. I think there's more asymmetry on the upside there versus some of the U.S. tech."

Bottom line: Tech weakness looks temporary, and the market will move back into high-growth stocks again. In the meantime, consider tech sector opportunities outside the U.S.

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