On CNBC's "Trading Nation," Quint Tatro and Bill Baruch discussed Morgan Stanley's bullish call on online ad plays.
Tatro thinks the analyst is right and he thinks there is going to be an opportunity to buy these stocks as we see the theme of value over growth play out. He expects these stocks to come in and he is watching Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) and Facebook, Inc. (NASDAQ:FB), which are his favorite picks in the space. A lot of people are concerned about the valuation of these stocks, but they have to understand these companies have Teflon balance sheets and we are in an environment where businesses will be trying to reach their customers online, believes Tatro. He would be a buyer on a pullback and he would keep adding shares on dips.
Bill Baruch would also buy Alphabet and Facebook on a pullback. He owns both stocks. He thinks there are tailwinds that are supportive for value stocks, but that doesn't mean you should sell growth stocks. His buy zone for Google is between $1,650 and $1,550 and for Facebook between $250 and $275. Baruch would wait for Pinterest Inc (NYSE:PINS) to pull back somewhere around $40.