Salesforce Chief Executive Marc Benioff told CNBC on Tuesday that despite an unprecedented rally among high-growth technology giants, some FANG stocks still remain undervalued.
“I think some of those FANGs are still undervalued, I would agree with Jim Cramer,” Benioff said on the sidelines of the World Economic Forum in Dalian, China.
Cramer, CNBC’s “Mad Money” host, suggested last week that FANG’s seemingly relentless run higher would most likely be led by Amazon during this “very broad growth rally”.
“You look at Amazon Web Services (AWS) business going past $20 billion this year and I think it is on a trajectory to go to $100 billion,” Benioff said.
The Salesforce CEO said his company enjoyed a close working relationship with Amazon and predicted the Seattle-based firm would have a “tremendous upside” with Chief Executive Jeff Bezos at the helm.
FANG rally could be a ‘bearish signal’
Meanwhile, on Saturday, the man often hailed as the original “Dr. Doom” pointed to the meteoric rise of FANG stocks as a glaringly bearish signal for the U.S. stock market.
Marc Faber, the editor of “The Gloom, Boom & Doom Report” and a perennial bear, predicted the stocks could soon be sent plummeting by 40 percent or more.
“You know we have a lot of volatility, and when things will start to go down, they’ll go down a lot,” he said.
Faber is deeply concerned that wealth has flowed to big corporations and affluent people. He believes the imbalance could eventually disrupt the markets as we know it.
—CNBC’s Stephanie Landsman contributed to this report.