In a Squawk Box interview, Loup Ventures founder Gene Munster has said that Apple is currently in a “paradigm shift” that will make it worth way more than $1 trillion. He noted that investors see Apple’s hardware as a subscription business. “We’re referring to it as Apple as a service, and that’s not reflecting their services segment”, said Munster.
“This is a concept that the hardware is actually performing like a subscription,” he added, noting that Apple consumers often exchange their old iPhones for a newer version about every three years. “If in fact, that is the case, I think that the multiple on Apple will go up.”
Last month, Munster argued that FAANG stocks as a group may not be a safe bet for investors. The term FAANG refers to Facebook, Apple, Amazon, Netflix and Google-parent Alphabet.
At the time, Munster said he saw a different path for Apple, Google, and Amazon, while predicting a weaker growth for Facebook this year. “Yes, Facebook is a behemoth,” Munster said, “but I don’t see outperformance coming from that name.”
Last week, Apple became the first publicly traded U.S. company to hit $1 trillion in market cap, after reporting strong quarterly results, posting big beats on earnings per share and average iPhone selling price.
Want to see more of our stories on Google?
P.S. Want to keep this site truly independent? Support us by buying us a beer, treating us to a coffee, or shopping through Amazon here. Links in this post are affiliate links, so we earn a tiny commission at no charge to you. Thanks for supporting independent Canadian media!
