How Will The FANG+ Trade Be Impacted By Brexit?

What impact, if any, will the Brexit voting outcome have on large-cap Internet companies? According to Mark May of Citi, it is simply too difficult to ascertain for the time being.

In a research report published Sunday, May pointed out that the European Union is the largest international region for the majority of large-cap Internet stocks under his coverage. As such, the "significant" currency movement seen in the British pound and euro poses a "risk" to the sector's performance as early as the third quarter this year.

Out of the "FANG+" group, eBay Inc (NASDAQ: EBAY) has the largest exposure to the British pound and euro at 16 percent and 21 percent, respectively. However, the company does utilize a cash flow hedging program that should counteract negative foreign exchange fluctuations.

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After eBay, Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) has the second largest exposure to the pound and euro at 9 percent and 15–16 percent, respectively.

Facebook Inc (NASDAQ: FB) ranks third at 9 percent and 13 percent, followed by Amazon.com, Inc. (NASDAQ: AMZN).

Netflix, Inc. (NASDAQ: NFLX)'s exposure to the region could impact its revenue growth, as the analyst's model assumes the international segment will account for 64 percent of incremental growth in 2016 and 2017 and Europe accounts for the largest share of international growth.