Fang stocks still have upside despite their recent slump, said one well-known tech exec.
"I think FANG stocks have a good ways to go," former Apple Inc. CEO John Sculley told TheStreet regarding growth potential for names like Facebook (FB - Get Report) , Apple (AAPL - Get Report) , Netflix (NFLX - Get Report) and Alphabet's Google (GOOGL - Get Report) . "The reason I say that is that there are a small group of companies with extraordinary leadership that are in the right place at the right time -- if you look at the most powerful names in market today, they are Amazon, Facebook, Google." Sculley's comments are on the reassuring side in light of the latest movements in FANG stocks.
The group declined 1.7% Monday for a fifth straight session of losses. That represents the most extended sessions in the red since before the November election, according to data obtained by Bloomberg. Even still, FANG is up an impressive 38% year to date. Sculley thinks it would be worthwhile to add Microsoft (MSFT - Get Report) somehow into the FANG acronym. Shares of the once sleepy tech giant are up 27% this year on the back of momentum for cloud services and LinkedIn. "I don't think anybody has done a better job of reinventing a corporate culture than Satya Nadella [Microsoft CEO] -- it's just incredible what he has accomplished in four years, it's a different company."
More With Sculley
Fascinating chat with Sculley on the topic of healthcare (see above). He has some skin in the game via an investment in upstart PBM RxAdvance. Overall, he doesn't see it being wildly easy for Amazon (AMZN - Get Report) and Apple to make big-time pushes into the messed up healthcare market. I would agree -- each tech giant will have to clear an array of dizzying hurdles in the healthcare system. So take a breath Amazon bulls, this growth opportunity might be 10 to 15 years off into the distance.
Join Jim Cramer, CNBC's Jon Najarian and Other Experts Oct. 28 in New York
Jim Cramer will host CNBC's Jon Najarian, TD Ameritrade's JJ Kinahan, famed analytics expert Marc Chaikin and other market mavens on Oct. 28 in New York City to share successful strategies for active investors.
You can join them as they discuss how smart investors can make the most of options trading, futures contracts, fundamental and quantitative analysis and great ETFs to buy right now. Participants will also get a chance to meet Jim and other panelists and take photos.
When: Saturday, Oct. 28, 8 a.m.-3 p.m.
Where: The Harvard Club of New York, 35 West 44th St., New York, N.Y.
Cost: $250 per person.
Click here for the full conference agenda or to reserve your seat now.
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