Tech shares come roaring back, led by Netflix and Amazon

Technology stocks moved sharply higher Friday, after a two-day slaughter saw the technology-heavy Nasdaq Composite Index fall briefly into correction territory, down 10 percent from its recent highs.

Technology Select SPDR Fund, which tracks the S&P 500 technology sector, rose 2.4 percent in premarket trading. Tech stocks were led by Netflix and Amazon, up 3.7 percent and 3.5 percent, respectively, while chipmakers AMD and Nvidia both rose 3.3 percent. Microsoft, Apple, Alphabet and Twitter shares were all 2 percent higher or more.

Dow futures pointed to a 300-point rebound at the open Friday.

Netflix and Microsoft were boosted by upgrades from Wall Street analysts who said the sell-off had gone far enough. Amazon was one of the stocks Jim Cramer said he was adding as part of his broader view that a market turnaround was due on Friday.

Tech stocks got clobbered amid a sell-off across stock markets this week, amid concerns over rising interest rates, escalating trade tensions and tighter monetary policy. The past two days saw Amazon, Netflix and Alphabet are all in correction territory after taking big hits this week.

On Thursday, the Nasdaq became the first major U.S. stock market benchmark to dip into a correction, falling as low as 7,274 in intraday trading – a drop over 10 percent from the most recent 52-week trading high of 8,133.30. A correction on Wall Street is defined as down more than 10 percent from its high.

Amazon is one of the top names to buy in this environment, according to CNBC's Cramer. Although shares of Amazon trade at $1,776 a share, Cramer said he doesn't know "when you buy Amazon other than it's when down big and people are really scared."

Citigroup upgraded shares of Netflix on Friday, saying the stock's recent tumble gives investors an opening to buy.

"We view the recent sell-off as an opportunity to own a high-quality, recurring revenue franchise with attractive upside potential," Citi analysts said.

Snap and Twitter were both upgraded by Pivotal Research on Friday. Snap has been getting crushed this year, hitting an all-time low of $6.46 a share on Oct. 11. Pivotal sees potential for Snap to go private and improve its revenue sources. Pivotal said it has "some faith that" Snap can "find ways to reverse recent usage trends and generally improve monetization."

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