Investors should "buy the fear" of the Trump administration that is priced into large cap Internet stocks, Piper Jaffray analyst Gene Munster wrote.

TRUMP AND TECH: During the campaign, tech leaders warned that President-elect Trump would hurt the tech industry by impeding the free flow of ideas and people, and by preventing engagement with the outside world, Munster noted. However, Trump's plan for his first 100 days as president does not address technology at all, the analyst reported. Trump will not eliminate net neutrality or alter the H1-B immigration system, Munster predicted. Moreover, the president-elect will probably not investigate Amazon (AMZN) for tax and antitrust violations, despite appearing to threaten to do so during the campaign, Munster believes. Amazon does not seem to have broken any laws, and probing Amazon could cause the public's view of Trump to deteriorate further, the analyst stated. Any tariffs that Trump imposes will probably not hurt demand for Apple's (AAPL) iPhones significantly, since most consumers pay for the devices on installment plans, Munster added. The elimination of net neutrality rules, which Trump has criticized in the past, would have would have both positive and negative implications for Netflix (NFLX), according to Munster, who adds that Trump was primarily concerned about net neutrality because of his fear that the government would use it to repress opposing viewpoints, and he is not necessarily opposed to net neutrality per se. The analyst does not expect the Internet regulation status quo to be changed in the near term. The Trump Administration will not create any significant headwinds for Google (GOOG,GOOGL) and Facebook (FB), Munster believes.

CONCLUSION: The decline in the large Internet stocks named presents a "rare opportunity" to buy them on weakness, and their current valuations are attractive, Munster stated. He kept Overweight ratings on each of the stocks named.

PRICE ACTION: In early trading, Amazon rose 0.6% to $750.62, Apple lost 0.9% to $109, Facebook was flat near $116.50, Class A shares of Alphabet added 0.5% to $784, and Netflix was fractionally higher near $115.60 per share.