FILE PHOTO: The logos of Amazon, Apple, Facebook and Google in a combination photo from Reuters files./File Photo
FILE PHOTO: FILE PHOTO: The logos of Amazon, Apple, Facebook and Google

  • FAANG stocks will diverge in 2021 as some names soar and some lag behind, Loup Ventures founder Gene Munster told CNBC on Thursday.
  • While Apple and Amazon were both up roughly 80{3c6be4297db6c6dead22aac82e61edad92a520b73a55778b8446ff6b78406501} in 2020, and Netflix was up roughly 70{3c6be4297db6c6dead22aac82e61edad92a520b73a55778b8446ff6b78406501}, the two other FAANG behemoths, Facebook and Google’s parent Alphabet, only gained about 30{3c6be4297db6c6dead22aac82e61edad92a520b73a55778b8446ff6b78406501}. That’s less than the overall Nasdaq, which was up 43{3c6be4297db6c6dead22aac82e61edad92a520b73a55778b8446ff6b78406501} in 2020.
  • “The trade of advertising tech did not work in 2020,” Munster said, and that likely won’t change in 2021. 
  • The venture capitalist said Amazon and Apple will do well next year, adding Apple’s stock could reach $200. That would propel Apple to a $3 trillion valuation.
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Not all Big Tech stocks will soar next year, said Loup Ventures founder Gene Munster.

The venture capitalist and former tech stocks analyst told CNBC on Thursday that investors need to pay close attention to individual technology companies to find out what worked in 2020, and what didn’t.

While Apple and Amazon were both up roughly 80{3c6be4297db6c6dead22aac82e61edad92a520b73a55778b8446ff6b78406501}, and Netflix was up about 70{3c6be4297db6c6dead22aac82e61edad92a520b73a55778b8446ff6b78406501}, the two other FAANG behemoths, Facebook and Google’s parent Alphabet, only gained about 30{3c6be4297db6c6dead22aac82e61edad92a520b73a55778b8446ff6b78406501}. That’s less than the overall Nasdaq, which was up 43{3c6be4297db6c6dead22aac82e61edad92a520b73a55778b8446ff6b78406501} in 2020.

“The trade of advertising tech did not work in 2020,” Munster said, explaining Google and Facebook’s performance. “My point is simple, we think that there will be a further fracturing of FAANG.”

Munster said that in 2021, top performance is going to come from Apple, which he believes could gain 51{3c6be4297db6c6dead22aac82e61edad92a520b73a55778b8446ff6b78406501} to $200. That price gain would push Apple’s market capitalization to over $3 trillion. 

Read more:JPMorgan unveils its 50 ‘most compelling’ stock picks to buy for 2021 – and details why each one will be a top performer

Munster also said that Amazon will do well, while Facebook and Netflix will “start to fade away as FAANG fractures in 2021.”

Calling a bubble in Big Tech stocks has been a prominent concern throughout 2020 as the technology sector soared. But  Munster said investors shouldn’t label the entire tech sector  “as a bubble or not a bubble.” 

Instead, investors should examine individual technology companies and brace for a FAANG fracturing. 

Read more:We spoke with Wall Street’s 9 best-performing fund managers of 2020 to learn how they crushed the chaotic market – and compile the biggest bets they’re making for 2021