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Gene Munster On What DoorDash, Airbnb IPOs Mean For FAANG Stocks

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Gene Munster On What DoorDash, Airbnb IPOs Mean For FAANG Stocks

Two high-profile initial public offerings will take place in the near-term, as DoorDash and Airbnb are set to become public companies by the end of the year. This could impact how investors look at FAANG stocks, according to Loup Ventures' Gene Munster.

What Happened: DoorDash and Airbnb are part of a "bigger story" in the market, as investors have come to realize what worked in the past "simply won't work in the future," Munster said on CNBC's "Squawk Box."

Investors holding on to their FAANG stocks indefinitely under the assumption they will go up forever could be making a mistake, the analyst-turned-tech venture capitalist said. 

Related Link: FAANG Stocks Present Buy Opportunities, Says Cramer

"I want to caution some FAANG holders is that this idea that we can blindly own these stocks is misleading," he said. "I think there's going to be a fracturing in FAANG."

Why It's Important: FAANG component members Facebook, Inc. (NASDAQ: FB) in particular, Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) and Netflix Inc (NASDAQ: NFLX) simply won't perform that well, Munster said. 

Apple Inc. (NASDAQ: AAPL) is a "whole other topic," and the company is an outlier in the elite FAANG group, he said. 

"The market is telling us something loud and clear," Munster said. "What's worked in the past isn't going to work in the future."

What's Next: One tech company that could stand out in the coming years is Tesla Inc (NASDAQ: TSLA), Munster said.

Most notably, the "Tesla story is going to evolve" moving forward, as it shifts from a car company to whole new ancillary markets like insurance, autonomous driving, HVAC — and an eventual "flying taxi."

"The concept that this company is going to evolve and be a tech leader in the next decade," he said. "'I'm on board with that."

Photo courtesy of Airbnb. 

 

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