Roger McNamee: Apple Is The One Stock To Own In Tech Space Right Now

Apple Inc. AAPL has been upgraded to Outperform from Neutral by Credit Suisse analyst Kulbinder Garcha. In his note to investors, Garcha argues that Apple is going to sell lots of iPhones and will increase the cash return program to $200 billion from the present $130 billion owing to the enormous amount of cash it is going to generate.

Roger McNamee, musician and also a founding partner at Elevation Partners, was on CNBC Tuesday discuss whether Garcha is being too bullish on Apple.

“The numbers are mind boggling, but when you look at Apple’s ability to generate cash, I wouldn’t put it past, I have have no idea what they are going to do with it,” McNamee said. “ One thing I do know…whatever the emotions the underlying fundamentals at Apple are really fantastic and they are in this position where the ecosystem around the iOS operating system and the Macintosh operating system are one large cohesive hole and with each new feature whether its Apple Pay or the Watch or whatever, each thing makes the overall ecosystem more valuable and interestingly enough because it’s one big ecosystem they are sensitive to the success of individual products like the watch as they would have been in the past.”

He continued, “So, to me it’s an amazingly cheap stock with nearly a 2% yield in a market where yields are really hard things to come by and so, again if you are going to own a stock here, I think Apple in the tech space is the one to own, but like I say your market call is going to drive whether you are going to be in it or not.”