Reuters
- FAANG shares will diverge in 2021 as some names fire and some fall behind, Loup Ventures founder Gene Munster told CNBC on Thursday.
- While Apple and Amazon increased by about 80% in 2020, and Netflix rose about 70%, the other two FAANG giants, Facebook and Google parent alphabet, only gained about 30%. This is less than the general Nasdaq, which increased by 43% in 2020.
- “The advertising technology trade didn’t work in 2020,” said Munster, and that is unlikely to change in 2021.
- The venture capitalist said that Amazon and Apple will perform well next year, adding that Apple’s shares could reach $ 200. That would lead Apple to a $ 3 trillion valuation.
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Not all of Big Tech’s stock will rise next year, said Loup Ventures founder Gene Munster.
The venture capitalist and former technology stock analyst told CNBC on Thursday that investors need to pay close attention to individual technology companies to find out what worked in 2020 and what didn’t.
While Apple and Amazon rose about 80%, and Netflix rose about 70%, the two other FAANG giants, Facebook and Alphabet, Google’s father, gained just 30%. That’s less than the overall Nasdaq, which rose 43% in 2020.
“The advertising technology trade didn’t work in 2020,” said Munster, explaining the performance of Google and Facebook. “My point is simple, we think there will be a new fracture of the FAANG.”
Munster said that in 2021, the best performance will come from Apple, which he believes can earn 51% to $ 200. That price gain would push Apple’s market capitalization to more than $ 3 trillion.
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Munster also said that Amazon will perform well, while Facebook and Netflix “will begin to disappear as the FAANG fractures in 2021”.
Bubbling Big Tech’s stock was a prominent concern throughout 2020, as the technology sector soared. But Munster said investors should not label the entire technology sector “as a bubble or not a bubble”.
Instead, investors should look at individual technology companies and prepare for a FAANG fracture.
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