According to Loup Ventures‘ Gene Munster and David Stokman, Apple will be the top-performing FAANG – Facebook, Apple, Amazon, Netflix, Google – stock in 2021.
Gene Munster and David Stokman for Loup Ventures:
Apple will be the top-performing FAANG stock in 2021. This is the third consecutive year we’ve made this prediction. In 2019, Apple was the top performer, and the stock is set to repeat in 2020. We think Apple will come out on top again in 2021 based on four factors:
• The accelerating digital transformation means more people are working and learning from home, providing a continued tailwind for the iPad and Mac businesses (about 25% of total revenue). We believe these two segments can grow at 10% plus in 2021 and 2022, compared to flat growth in the last few years.
• 5G enthusiasm will grow in the back half of the year, starting a two to three-year iPhone upgrade cycle.
• While Street FY21 revenue growth estimates of ~15% are in line with our expectations, we believe consensus estimates for FY22 of 5% y/y revenue growth are too low. We expect those estimates to inch higher throughout FY21. Ultimately, we believe FY22 revenue growth will be closer to 10%.
• Growing anticipation of new business segments that likely won’t launch until 2022 at the earliest. We expect hardware subscription offerings that build toward a 360° bundle, along with growing optimism around a massive expansion in the company’s addressable market with Apple Car.
MacDailyNews Note: Additionally in Loup Ventures’ predictions for 2021 – recommended – Munster and Stokman predict:
Apple will launch AirTags and new services in 2021. First, AirTags; the rumor mill has been spinning for the past year that Apple will launch an attachable device to help keep track of your belongings. We think 2021 is the year. AirTags would compete directly with Tile and have the obvious advantage of being integrated within Apple’s Find My software, iCloud services, and hardware ecosystem. And, speaking of services, we believe 2021 is the year Apple will take a page from Spotify’s playbook and bundle premium podcasts (Podcasts+) with Apple Music and Apple One, at no extra charge for paying subscribers. Good news for podcasters, who may see Apple as another avenue to monetize their listener base.
Apple has been amazing this year in both products and financial value. Tim Cook is doing a fine job.
Yeah, AirTags… nearly reaching Liquid Metal product status. I suppose Apple is waiting for some particular OS level for both iOS and macOS. Oh, well, I’m not sure AirTags are something I would use but I guess it could come in handy for many people.
It’s easy to generate profit when you use slave labor.
https://www.zerohedge.com/technology/explosive-report-alleges-extensive-use-forced-labor-apple-suppliers-china
Apple is the one company that has gone over to China and when abuses were found, and there were some, corrected them. This is merely Bezos trying to put a leash on Apple. Besides, Tim Cook is smart enough to know having forced Lac our is the one issue that could take Apple down. That is why it will not happen. Tim is simply not that dumb.
Besides, I hate articles that use the word ‘alleges’ which is a euphemism for ‘no solid proof yet’.’