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Not All FAANG Stocks Are Going To Be Winners, Munster Says

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Not All FAANG Stocks Are Going To Be Winners, Munster Says

All big tech stocks should not be treated the same and the FAANG stocks are in for a "fracturing,” Gene Munster, co-founder of Loup Ventures, said on CNBC's Trading Nation.

Munster is bullish on Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG), Amazon Inc (NASDAQ: AMZN), and Apple Inc (NASDAQ: AAPL) — classifying them as the "haves", while calling Netflix Inc (NASDAQ: NFLX) and Facebook Inc (NASDAQ: FB) as the "have nots" in the post-pandemic era.

What Happened: Munster forecasts that investors will have more clarity, once these big tech companies disclose their forward outlook in September quarterly earnings.

"The companies that are the haves are ultimately going to be involved in much bigger businesses," said Munster.

Munster is most bullish on Apple among the FAANG stocks, owing to its innovative wearables in the health and wellness space, reports CNBC. He speculates that newer Apple wearable will be designed to attract more health-conscious consumers.

He also held a positive notion about Amazon’s logistics infrastructure and Alphabet subsidiaries Verily and Waymo.

Munster forecasts that the group of "have nots” will be limited to their current model of "social advertising" or "content business" for the next one to two years.

Why Does It Matter: Towards the end of August, U.S. tech stocks were collectively worth over $9 trillion, according to Forbes. Nasdaq hit a record high — shooting above 12,000 on Sept 2 — but the market saw a correction last week. The selloff in tech stock presents a buying opportunity, according to a CNBC report.

Price Movement: FB shares closed 2.66% higher to $254.75 on Tuesday, AMZN gained 5.69%, and AAPL rose 1.57% to $111.81. Netflix closed at $491.17 with a 0.78% uptick and GOOG ended the day 2.40% higher at $1465.46.

 

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