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Wall Street may be dumping FAANG stocks, but it doesn't look like it has the confidence declines will persist for a long period of time. 

If Wall Street truly hated names such as Facebook (FB) - Get Meta Platforms Inc. Report , Amazon (AMZN) - Get Inc. Report , Apple (AAPL) - Get Apple Inc. Report , Netflix (NFLX) - Get Netflix Inc. Report and Google (GOOGL) - Get Alphabet Inc. Report , it would be betting against them via short positions. That's not the case at the moment. Short interest on FANG/FAAANG stocks has fallen to near record low levels of 1% of the float over the past year, according to research from Bank of America Merrill Lynch. 

That lack of short positions could mean one of two things for investors in the space. One, the fundamentals of the tech giants continue to be strong and that recent selling on fears of overvaluation and government regulation is overdone. Or two, Wall Street is horribly positioned in front of the sector's changing fundamental picture. 

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Somehow the latter makes a touch more sense. 

"It's interesting times -- I think what we are seeing is a shift in the markets," Stifel's chairman and CEO Ron Kruszewski tells TheStreet. "We have been in a period of low interest rates, low inflation and low growth and that has promoted passive investing and high price-to-earnings multiple stocks."

Added Kruszewski, "Now we are going to change, where you will get higher growth and higher interest rates and the market is going to be more volatile -- it's going to be a stock-picker's market."

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