Gradient Investment's Mike Binger says investors should buy Amazon despite its longest losing streak since January 2016.
He spoke Friday, just before the Nasdaq 100 just posted its worst week of the year in the wake of President Donald Trump's announcement Thursday to impose 10% tariffs on $300 billion worth of Chinese imports, effective Sept. 1. Binger says buy any dip in this high flying group, particularly Facebook, Amazon and Alphabet.
"These companies are relatively immune from this tariff announcement," he said on CNBC's "Trading Nation." "I have no problems with the buy ratings that MKM assigned those companies, they've been strong performers. They are not immune to pullbacks, but I would use pullbacks opportunistically."
On Friday, MKM Partners initiated buy ratings on Facebook, Amazon and Alphabet, saying the scale and reach of these companies is "unlike any other trifecta of companies in a single sector." The firm said it expects the stocks to recover in the long run.
The bullish call came as Amazon posted its longest daily losing streak in nearly four years, and the Nasdaq 100 seeing its worst loss since the depths of the December sell-off. It was down 2.8% in Monday's premarket.
In addition to Amazon, Binger points to Alphabet and Apple as being worth buying on the recent dip. According to Binger, both stocks posted strong quarters, with Apple giving better guidance. Apple was down 2.8% and Alphabet was 1.7% lower in Monday's premarket. Facebook was off 2.3%
But Mark Newton of Newton Advisors warns that there is "evidence of real deterioration" in the tech sector, with the FANG stocks lagging in particular since last year.
"There are some winners – Twitter, Facebook, Google and Amazon – those all look really good technically," he said on "Trading Nation." "However, they've all began to show near-term signs of pulling back. So, I think as you approach the months of August and September, it's right to be a little more defensive and hold off on really buying dips."
Despite falling last week, the Nasdaq 100 is still up 22 percent year to date.
Disclosure: Gradient portfolios have holdings in Facebook, Amazon, Apple, Netflix and Alphabet.