Barclays says valuations at dot-com bubble levels, downgrades large tech stocks

Amazon CEO Jeff Bezos
Alex Wong | Getty Images

(This story is for CNBC Pro subscribers only.)

Stock valuations are approaching extreme levels last seen during the dot-com bubble, with the some of the largest risk hidden in the technology darlings that led the market rebound, according to Barclays.

The Wall Street firm said that even after the recent pullback, stock valuations are at their 2000 dot-com peaks, forcing Barclays to downgrade the FANMAG (Facebook, Amazon, Netflix, Microsoft, Apple and Google-parent Alphabet) sector to market weight given the stretched valuations.