Mark Tepper Says 'DAWN' Is The New 'FANG'

The era of "FANG" stocks may have come to an end and been replaced with "DAWN," Strategic Wealth Partners chief Mark Tepper said on a recent CNBC "Trading Nation" segment.

DAWN

DAWN, a play on the slogan "it's always darkest before the dawn," is Tepper's investment theme at a time when travel, sports, and schools are all being canceled due to the coronavirus pandemic, he said. The "DAWN" strategy consists of "D" for Domino's Pizza, Inc. (NYSE: DPZ), "A" for Activision Blizzard, Inc. (NASDAQ: ATVI), "W" for Walmart Inc (NYSE: WMT), and "N" for Netflix Inc (NASDAQ: NFLX).

All of the companies are themes on people hunkering down at home. They can order pizza, play video games, load up toilet paper or ramen and enjoy a TV show or movie, he said. 

"This is all the stuff you do when you don't want to leave your house, and right now, that's where we're headed," Tepper said.

Why Not FANG?

Tepper doesn't like the idea of buying FANG components Facebook, Inc. (NASDAQ: FB) and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), as he said they could suffer as small businesses start pulling back on their online ad budgets, he said.

Although not a FANG component, software companies like Microsoft Corporation (NASDAQ: MSFT) should perform better than hardware companies, Tepper said.

Microsoft in particular looks "awesome on the pullback" and is a stock "that we're looking at buying right now," he told CNBC. 

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