Yahoo Finance Facebook Can Weather Storm Better Than Big-Tech Peers, MKM Says
By Yasin Ebrahim
Investing.com – Wall Street is teetering on the brink of a historic percentage slump in the Dow, but for investors looking to stick with big tech, Facebook is likely the best bet, MKM partners said.
Megacap technology and internet stocks are "significantly diversified" businesses that are better able to weather uncertainty than in the past, MKM Partners said, singling Facebook (NASDAQ:FB) out as the stock with the least downside risk, followed by Amazon.com (NASDAQ:AMZN) and then Alphabet I(NASDAQ:GOOGL).
All three stocks were down more than 6% on Thursday.
The diversified businesses of tech stalwarts, including Facebook, Amazon and Google, offer "greater resilience and likely a greater ability to endure dramatic body blows," the firm added.
Google's exposure to travel-related ads, however, makes the search-engine giant the most vulnerable to downside pressures, as travel demand has soured in the wake of the coronavirus outbreak, which has seen governments restrict travel.
Just a day earlier, President Donald Trump said the United States would suspend travel for non-citizens and non-residents from 26 European countries - excluding the U.K and Ireland - into the U.S.
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