Mark Mobius Bets On Tech Stocks Even As They Are Hit

Famed investor Mark Mobius has said the steep equity market sell-off is a good time to load up on profitable technology stocks such as the so-called FAANG companies, Harry Robertson reported for Business Insider.

Photo Insert: Mark Mobius (left) at the Vega Innovations workshop in Sri Lanka

Mobius told CNBC Wednesday: "Those [companies] that have been hit as a result of the overall decline in tech stocks, that are making money, that have a good return on capital that are growing… these are great buys right now."

Tech stocks got crushed Wednesday after the release of minutes from the Federal Reserve's December meeting, which showed that the central bank could start withdrawing support for the economy and raising interest rates sooner than expected.

The tech-heavy Nasdaq 100 index dropped 3.12% and the benchmark S&P 500 fell 1.94%. Ark Invest's Innovation ETF – seen by analysts as a proxy for unprofitable and speculative technology companies – plunged 7.09%.

Yet Mobius, a veteran emerging-markets investor and the founder of Mobius Capital Partners, told CNBC he was keen on FAANG – Facebook (now Meta), Apple, Amazon, Netflix, and Google (now Alphabet) – because they're strong earners. All were hit in Wednesday's sell-off, with Alphabet down the most at 4.59% and Netflix the second-worst hit at 4%.

Mobius said investors needed to be looking for "good stocks" that are making money and can deliver strong returns even as borrowing costs rise. "​​Those companies that are losing money, particularly in the tech sector… are gonna get hit very badly, and of course, those that are making money will do well," he said.

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