Reuters
- FAANG shares will deviate in 2021 as some names rise and some lag behind, Loup Ventures founder Gene Munster told CNBC on Thursday.
- While appeal and Amazon both increased by about 80% in 2020, and Netflix was about 70% higher, the other two FAANG mounts, Facebook and Google’s parenting, achieved only about 30%. It’s less than the whole Nasdaq, which increased by 43% in 2020.
- “The advertising technology trade did not work in 2020,” Munster said, and it is unlikely to change in 2021.
- The venture capitalist said Amazon and Apple will do well next year, adding that Apple’s share could reach $ 200. That would drive Apple to a $ 3 billion valuation.
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Not all Big Tech shares will rise next year, Loup Ventures founder Gene Munster said.
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 will work in 2020, and what will not.
While Apple and Amazon both rose by about 80%, and Netflix by about 70%, the other two FAANG kings, Facebook and Google’s older Alphabet, gained only about 30%. This is less than the overall Nasdaq, which rose 43% in 2020.
“Advertising technology trading did not work in 2020,” Munster said, explaining the performance of Google and Facebook. “My point is simple, we think there will be a further break of FAANG.”
Munster said the best performance would come from Apple in 2021, which he said could reach 51% to $ 200. That price increase would increase Apple’s market capitalization to more than $ 3 billion.
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Munster also said that Amazon would do well, while Facebook and Netflix “would start disappearing if FAANG breaks in 2021.”
The naming of a bubble in Big Tech shares was a prominent issue during the course of 2020 as the technology sector soared. But Munster said investors should not label the entire technology sector “as a bubble or not as a bubble”.
Instead, investors should examine individual technology companies and ensure that FAANG breaks.
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