Apple will be the top-performing FAANG stock in 2021 despite Google’s double-digit head start, Loup Ventures’ Gene Munster says

Tim Cook, Apple CEO
Apple CEO Tim Cook attends the world premiere of Apple’s “The Morning Show” at David Geffen Hall on Monday, Oct. 28, 2019, in New York City.

  • Loup Ventures’ Gene Munster doubled down on his bet that Apple will be the top-performing FAANG stock in 2021 on Thursday.
  • Munster said Apple’s recent quarter was the best in a decade in an interview with CNBC.
  • The Loup Ventures’ managing partner added that Apple has room to grow in EVs, hardware as a service, and mixed reality.
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Apple is set to outperform its FAANG stock competition in 2021, according to Loup Ventures’ Gene Munster.

In an interview with CNBC on Thursday, Munster discussed the recent big tech earnings season and lauded Apple’s performance.

“I have a prediction that Apple’s going to be the top-performing FAANG for 2021. I’m well behind Google right now, I think they’re up 30% to 40%, Apple’s just up fractionally, but I continue to stand behind that,” Munster said.

Munster added that Apple’s recent quarter was the best he has seen in a decade and that he believes the stock will move to $200 per share.

Apple’s revenue jumped 54% to $89.6 billion in its latest quarterly report. The company also notched a profit of $23.6 billion and increased its cash dividend by 7% increase to $0.22 per share.

Management authorized an increase of $90 billion to Apple’s existing share-repurchase program as well. Analysts mostly reacted positively to the stand-out quarter.

Wedbush’s Dan Ives called the performance a “drop the mic” moment for Apple and CEO Tim Cook.

Munster said that naysayers will argue this quarter’s outstanding performance isn’t sustainable with touch comps ahead, but he believes Apple will continue to prove the bears wrong by moving into new lines of business.

To Munster’s point, Bank of America’s Wamsi Mohan maintained his “neutral” rating on Apple after the company’s blowout quarter.

Mohan told CNBC that antitrust risks, a potential corporate tax increase, and tough comparisons to previous quarters that were boosted by the work-from-home trend could drag on the stock in the coming months.

Gene Munster disagrees, noting that Apple has new opportunities in hardware as a service (renting Macs, iPhones, iPad in bundled form), mixed reality, and electric vehicles that will buoy the company moving forward.

Munster said that “transformative tech” companies like Apple will continue to make strides, despite questions about lofty valuations.

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DoorDash and Airbnb are not the future of tech leadership, says venture capitalist Gene Munster. He breaks down 3 under-appreciated tech stocks that have greater potential.

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  • Venture capitalist Gene Munster told CNBC on Friday that while Airbnb and DoorDash are “phenomenal,” there’s more potential for upside in underappreciated tech names including Zillow, Carvana, and Take Two Interactive.
  • The Loup Ventures co-founder and veteran tech analyst said he owns Zillows personally and with a valuation of just a third of Airbnb’s, it has potential to be “massive.”
  • Munster also said that he likes online used-vehicle sales platform Carvana. That stock is up over 180% year-to-date and trades at roughly $261 a share.
  • Visit Business Insider’s homepage for more stories.

Venture capitalist Gene Munster told CNBC on Friday that while recent IPO’s like Airbnb and DoorDash are “phenomenal,” he sees a different class of tech stocks taking leadership in the future.

“This recent IPO class is phenomenal, they are disruptors,” Munster said of Airbnb and DoorDash. But he added that a lot is priced into their valuations already, and the best stock performance is going to come from underappreciated tech stocks like Zillow, Carvana, and Take-Two Interactive.

The Loup Ventures co-founder and veteran tech analyst said he owns Zillow personally and that it will be “massive.” The online real estate company is currently valued at a $29 billion market capitalization, just one third of Airbnb, Munster added. 

“They’re gonna take what they do so well about capturing the users on a monthly basis, checking out real estate, renting, buying and add other products to that,” he said on Zillow. 

Read more:Who’s going to catch them?’: A Tesla analyst who once covered Intel breaks down the similarities he sees in the 2 disruptive companies – and shares why the stock has the potential to soar another 30%

Zillow is up roughly 170% year-to-date and is currently trading around $124 a share.

Munster also said that he likes online used-vehicle sales platform Carvana. That stock is up over 180% year-to-date and trades at roughly $261 a share. 

Video game company Take Two Interactive was another one of Munster’s picks. The stock is trading at $190 a share and is up 55% year-to-date.

When CNBC’s Joe Kernan asked Munster if he would put the same faith he has in tech giants like Amazon, Facebook, and Google, into DoorDash and Airbnb, Munster said: “No, I wouldn’t.” 

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Tesla could soar another 300% as the company expands its tech outside of the auto industry, says a prominent VC investor

FILE PHOTO: Tesla Inc CEO Elon Musk dances onstage during a delivery event for Tesla China-made Model 3 cars in Shanghai, China January 7, 2020. REUTERS/Aly Song/File Photo
Tesla Inc CEO Elon Musk dances onstage during a delivery event for Tesla China-made Model 3 cars in Shanghai

  • Tesla could soar over 300% to reach $2,500 in the next three years, says venture capitalist and veteran tech analyst Gene Munster.
  • The Loup Ventures co-founder told CNBC Tesla will use its current technology to expand beyond the auto industry and into areas like insurance, autonomy, and HVAC.
  • “They’re going to evolve outside of cars longer term,” Munster added.
  • Shares of Tesla reached an all-time high of $615 shortly after the opening bell on Monday. 
  • Visit Business Insider’s homepage for more stories.

Tesla could soar over 300% to $2,500 within the next three years, according to venture capitalist and veteran tech analyst Gene Munster. A move like that would push Tesla’s current $567 billion market capitalization to over $2 trillion. Only one other company in the world-Apple-has passed that number to date.

The Loup Ventures co-founder told CNBC on Monday that Tesla will evolve over the next few years to become more than just a car company.

“They’re really going to take their tech that they’re defining and pioneering with auto and apply it to new markets,” he said.

Munster discussed how Tesla CEO Elon Musk recently said that the company may enter into the insurance business, HVAC space, and autonomous vehicle industry. 

“Elon has recently said that 30 to 40 percent of the value the car could be in insurance,” said Munster. “What that means is that they can start offering their own insurance and improve margins. That’s high margin revenue, not to mention everything they’re doing around over-the-air updates with autonomy and what they can even do around HVAC.”

Read more:Market wizard Chris Camillo grew his trading account by $9.7 million in 2020. Here’s the simple strategy he’s using to mint millions.

Munster also pointed to flying taxis as another frontier Tesla may expand to that could propel it’s stock price, though he added: “I would not invest in Tesla based on that, but the concept that this company is going to continue to evolve and be a tech leader in the next decade, I’m on board with that.”

Munster added that the “ship has sailed” for traditional auto companies to compete with Tesla, though Volkswagen followed by GM are in the best positions to “remotely compete” with the electric vehicle maker.

“There’s no substance competition, they’re going to evolve outside of cars longer term,” he said of Tesla.

The venture capitalist, who spent over 20 years as a tech analyst on Wall Street, said that Apple could be the biggest company to compete with Tesla over the longer term. 

“Whatever [Apple’s] ambitions are in vehicles, I mean it’s been really quiet there, I’m not expecting anything in the near term, but that as a Tesla investor would be the one announcement that would cause me to step back and rethink things,” said Munster.

Shares of Tesla reached an all-time high of $615 shortly after the opening bell on Monday. 

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