Zinger Key Points
- Bryn Talkington says now is the time to move money into names that are likely to outperform the markets.
- She says "two, three, five years from now, the markets will look very different."
- Get New Picks of the Market's Top Stocks
One investor is shaking up her exposure to FAANG names after finding a valuation opportunity.
What Happened: Requisite Capital Management's Bryn Talkington sold Amazon.com Inc AMZN to buy Meta Platforms Inc FB.
"If you look at trailing P/E, one is at 55 ... one is at 14," Talkington said Monday on CNBC's "Fast Money Halftime Report."
She noted that instead of trying to find a bottom, she is looking for solid companies that have experienced significant multiple compression. Despite Amazon's underperformance over the last year, the stock is still expensive on a price-to-earnings basis, but Meta has become too cheap to ignore, she said.
"If the Nasdaq is under pressure, they will both continue to go down, but I think at a 14 P/E and growing, and it's gotten really so beaten up, I just wanted to switch out," Talkington said.
Why It Matters: She told CNBC that now is the time to be moving money into names that investors think will outshine the markets over a longer period of time.
"Because two, three, five years from now, the markets will look very different," Talkington said.
Investors with a longer-term outlook should take advantage of opportunities in some of the most beaten down quality growth stocks, which is what she is trying to do by increasing her exposure to Meta, she added.
FB, AMZN Price Action: At press time, Meta was up 0.36% at $194.24, while Amazon was down 1.29% at $2,124.00.
Photo: Jan Vašek from Pixabay.
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