If you’re one of those still waiting for a FANG stock correction, then you’ll still be waiting next year, according to another analyst. He still sees plenty of runway for FANG, which includes Facebook Inc (NASDAQ:FB) stock, Amazon.com, Inc. (NASDAQ:AMZN) stock, Netflix, Inc. (NASDAQ:NFLX) stock and Alphabet Inc (NASAQ:GOOGL) stock.

fang stock correction
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Initiating coverage of the FANG stocks

The call against a FANG stock correction in 2018 may be one of several factors driving a rally in most tech names on Wednesday, given how some blamed the acronym for Apple’s summertime decline. Apple stock, however, bucked the broader tech rally and was left out in the cold on Wednesday.

Analyst Anthony DiClemente initiated coverage of all the FANG stocks and several other technology names this week at Evercore ISI. He previously worked for Nomura Instinet. Across much of his coverage for Evercore ISI, the theme was disruption, which is a major buzz word when talking about technology companies. He believes that the next wave of growth in the tech sector could be bigger than the previous one, according to CNBC.

DiClemente noted that the top technology companies today are disrupting their industries via the internet and taking profits from major industries that are well-established. He feels that this is where the real growth in earnings and free cash flow is coming from. He expects the next tools that will be used for major growth include smartphones, digital marketplaces and continuing user growth at online platforms.

No FANG stock correction in sight

The analyst slapped a price target of $225 on Facebook stock, noting that web traffic coming from Facebook is up five-fold since 2013. Over that same timeframe, he feels that the digital ecosystem’s overall value “has effectively doubled.” He was even more impressed with Instagram’s growth within the last three years as its user base has grown four-fold to 800 million.

DiClemente gave Amazon stock a price target of $1,350 and talked up every aspect of the business, from the retail side to Amazon Web Services, Prime Instant Video and Alexa. He declared that Amazon is “the clear market leader” in e-commerce and cloud computing, and he continues to expect “attractive returns” because of the company’s massive infrastructure.

Alphabet stock received a $1,230 price target as he stated that Google will grow faster than the broader search industry due to the continuing shift toward mobile platforms and online searches. He predicts that the company will continue to be the biggest and most successful ad platform “well into the next decade” and also keep providing shareholders “attractive returns.”

Netflix stock was the only one of the FANG names that he didn’t give an Outperform rating. He rates it at In-line because he believes the company’s domestic subscriber base could be maturing. He does see plenty of room for international growth, but he believes Netflix might have to rethink how much pricing power it has in the U.S. because he expects user growth in the country to slow. Despite his lower rating for Netflix stock, his price target still suggests meaningful upside.

Shares of all four FANG stocks ended Wednesday in the green. Only time will tell when the FANG stock correction some investors are expecting will arrive, if at all, but he’s certainly not the only analyst attaching sizeable premiums to the four stocks.

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