Market Overview

The End Of The FANG Era? Gene Munster Makes The Case

Share:
The End Of The FANG Era? Gene Munster Makes The Case

FANG investors may want to consider a portfolio shuffle, as the acronym used to describe Facebook, Inc. (NASDAQ: FB), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL) Netflix, Inc. (NASDAQ: NFLX), and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) will undergo a divergence over the next year, according to Gene Munster.

The Analyst

Loup Ventures' Munster, a research analyst turned venture capitalist, talked FANG stocks on CNBC.

The Thesis

The era of FANG may come to an end over the next year and the tech sector will be split into "haves" and "have-nots," Munster said. The haves will include Amazon, Apple, Alphabet, and Tesla Inc (NASDAQ: TSLA) will "enter that mix," as the electric auto maker's recent earnings report signals it can be profitable and won't need to raise cash, he said.

In Munster's view, the have-nots are Facebook and Netflix, as the bullish case for both of the names isn't as compelling as it has been in the past, he said. Facebook's growth over the past year came at the expense of gaining share in the online video marketing space, and Netflix's growth came from new members, he said

The problem for both companies moving forward is that neither has the "massive, open-ended markets" that other names boast, such as health care initiatives or self-driving cars, Munster said.

Related Links:

More Leveraged FANG ETNs Are Here

Pro: FAANG Stocks Could Have 30-40% Downside Potential

Screenshot courtesy of CNBC.

Posted-In: CNBC FAANG FANG Gene Munster Loup Ventures tech stocksTech Media Best of Benzinga

 

Related Articles (AAPL + AMZN)

View Comments and Join the Discussion!

A Look At Twilio's Huge Quarter

Earnings Momentum Appears To Help Market As Trade Worries Take A Back Seat