CNBC Pro

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. 

More In Investing trends

CNBC ProThree stocks to play the clean tech theme after Biden signed the largest climate bill in U.S. history
CNBC ProStocks including Honeywell and Emerson are under-the-radar beneficiaries of the climate bill
CNBC ProGoldman Sachs says planned energy transition is driving stocks, picks its 'best-in-class' names