Apple’s stock market worth will have a significant rise in 2020, a groundbreaking prediction made by the tech analyst and venture capitalist Gene Munster.
According to Munster, the prediction is based on fundamental and multiple factors. By analyzing the closing stock market worth of Apple (AAPL) in 2019, it can be seen that Apple would make it to $400 stock in 2020.
“This [share’s worth] can be a $350 or $400 stock over the next year.” The Managing Partner and Cofounder of Loup Ventures, Gene Munster predicted while expressing views with CNBC’s TradingNation, on Tuesday.
Apple Stocks in 2019
In 2019, Apple’s stock worth rose rapidly and closed on the mountainous worth of $293 a share. By considering both the closing value approximated at $156.2 of last year and Munster’s prediction, Apple would gain a 37 percent growth in its stock market value in 2020.
At the onset of 2019, Apple faced a relatively low price per earning ratio, but at the end of the year, Apple closed out with the highest P/E value of 24.7 since 2010. The P/E ratio is the price per share of a stock divided by earning per share over the last 12 months.
It also follows a day when Apple’s share closed at $142.19, i.e., the lowest point of the year for Apple. Overall, the tech giant has made a staggering 89 percent annual growth at the end of 2019, reported by Fortune. The company has seen its strongest year in a decade.
FAANG vs Apple
Munster also mentioned the FAANG group, which includes Facebook, Amazon, Apple, Netflix, and Google. He briefly pointed out that, based on the Generally Accepted Accounting Principles (GAAP), Apple outweighed its other market competitors by collectively earning more than the combined FAANG group. For the year of 2020, Munster again nominated Apple as his top FAANG pick.
Along with Gene Munster, not so many other investors endorse the same prediction. The Portfolio Manager at Independent Solutions Wealth Management, Paul Meeks, who himself owns stocks in the Cupertino company called out Apple’s stock closing value of $293 as overpriced, warned about facing a decline in 2020. According to him, it should have been $170 worth per share at the end of 2019.
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Featured image: Todd Haselton/CNBC