Don’t let stretched valuations keep you from betting on high-profile tech and media stocks, says CFRA

CFRA media and entertainment analyst Tuna Amobi spoke to Business Insider’s Sara Silverstein about what 2018 holds for tech and media stocks. Following is a transcript of the video.

Sara Silverstein: When you look at tech and media stocks overall, do you think that they’re overvalued?

Tuna Amobi: I do think a lot of the stocks are trading near all-time highs partly because of the consolidation that we’ve seen across the landscape. So there is embedded takeover premium in some of these names. Nonetheless, we still believe that, you know, the fundamentals and the way that the landscape has been unfolding provides attractive opportunities for some of the leading players.

Silverstein:And so there’s still upside for 2018?

Amobi: That’s correct. That’s why we have a strong buy recommendation, for example, on shares of Disney. We’re recommending Amazon and Netflix as buys. And also, Comcast, we have a buy recommendation. We’re seeing companies starting to reap the benefits of scale in a vertical integration, horizontal integration, all of these themes are coming to play and investors are looking at the year ahead and they believe there’s probably more consolidation to come. There’s probably going to be benefits from rolling back of some of the regulations under the Trump administration. So there’s a potential catalyst that we see could take the group higher in this 2018.