The advent of 5G smartphones and increased sales of smart watches will allow Apple to grow faster than Facebook, Amazon, Netflix and Google, says Loup Ventures. Analysts point out that in two years the stock price of the technology giant could rise by almost 40%.
Apple stocks in 2020 are likely to show the best results again among all the members of the five FAANG – growing faster than the market for Facebook, Amazon, Apple, Netflix and Google. This position in the selection of its forecasts was expressed by Loup Ventures, a company specializing in venture capital.
Comparing Apple with other companies, the firm concluded that the fair price of its shares is $ 350-400. At the close of trading on Friday, one Apple share on the Nasdaq was worth $ 289.8. Gene Munster, an analyst at Loup Ventures, noted that the price of $ 350 (+ 21% of current value) for Apple shares is achievable in 2020, and they can rise to $ 400 (+ 38%) in 2021.
The fact that Apple will show the best dynamics among the companies FAANG, Loup Ventures wrote in last year’s forecast. Now the company indicates that Apple shares rose 83% over the year, Facebook – 53%, Google – 30%, Netflix – 24%, and Amazon – 21%.
Among the reasons for the optimistic forecast for Apple for 2020, Loup Ventures names the continued growth in sales of Apple Watch, the release of five new iPhone models and investors’ expectation of the introduction of 5G technology. The advent of smartphones with 5G “will be the largest iPhone update cycle” since 2015, when Apple began selling the iPhone 6 with an enlarged screen, the report said.