Apple May Be Trailing Google, Facebook In YTD Gains By Far But Munster Still Expects It To Be Top-Performing FAANG Stock In Rest Of 2021

Despite Apple Inc’s AAPL distant fourth rank among FAANG peers in terms of first-half gains, Loup Ventures analyst Gene Munster is bullish the Cupertino-based company will emerge as the top performer through the rest of 2021.

What Happened: Munster, who leads the research-based venture capital firm, said he is sticking to his original theory that faster digital transformation will drive demand for iPad and Mac businesses, which already contribute about 25% of the total revenue. 

“This is playing out as expected, with demand for these segments outpacing supply,” Munster said in a note. 

“Apple is unlikely to reach demand supply equilibrium for Mac and iPad until the September quarter, which leads us to believe the best days are still ahead for Mac and iPad.”

The Apple analyst also said 5G adoption will grow in the back half of the year, leading to a 2-3 year iPhone upgrade cycle.

Why It Matters: Munster in April said Apple will be the top FAANG stock in 2021 overall, a prediction he said now seems unlikely to come true.

The analyst in May noted the street is underestimating the multi-year iPhone upgrade cycle that will last through FY23 and only accelerate with the 5G rollout, which is currently limited in the U.S. but will turn into a “must-have” feature once more carriers roll out expansions. 

Apple embraced the 5G networks in October last year with the launch of iPhone 12, 12 mini, 12 Pro, and 12 Pro Max, the first iPhones to support 5G connectivity.  

After a roaring start, Apple’s 5G shipment volumes fell 23% in the first quarter sequentially, following a blowout fourth quarter when the new 5G iPhone was wildly popular as a gift during the holiday season.

Standing Among FAANGs: Alphabet Inc GOOG GOOGL sits on the top of the FAANG chart so far this year, fetching 52% returns, as of July 15.

Facebook Inc FB and Amazon.com Inc AMZN are next, registering 28% and 16% year-to-date gains, respectively. Apple stock has grown 15%, while Netflix Inc NFLX, at the bottom of the chart, has grown 6% during the period.

Price Action: Apple shares closed 1.41% lower at $146.39 on Friday.

Posted In: Apple Watchbig techConsumer TechFAANGGene MunsteriPhoneLoup VenturesMacBooksAnalyst ColorLong IdeasNewsAnalyst RatingsTechTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.